Real Estate Right Now
In the past few years, we’ve watched housing prices skyrocket all over the U.S. It definitely seems to be a seller’s market, but what are buyers supposed to do? Well, if the big names in business are correct, the market is beginning to turn. People who bought homes out of their price range are beginning to water down the market.
Baby Boomers, the biggest group of retirees ever, are downsizing. The older members of the generation are opting for community housing, and even apartments, where upkeep is virtually nonexistent. They’re dumping their mortgages and adding to the tide of available houses. This, experts predict, is the beginning of a huge opportunity for people prepared to buy real estate.
Recovery from the recent real estate boom means lower prices for investors. Basic principles of investment realty – buy it for less than you can sell it – still hold true. But if housing prices in the United States are dropping, how long will this trend last and is it still wise to put your money in real estate?
All business trends see peaks and valleys. Real estate, however, is REAL. It has tangible value that may have momentary dips but will always see an up-swing in the long run. Still, smart money managers find property that has plenty of potential and is still cheap enough for its purchase to make sense. Investment property in Latin American countries, such as Costa Rica, shows amazing potential.
While homes are depreciating elsewhere around the world, in Costa Rica, property is appreciating. The tropical forests and exotic wildlife add a specific pull-factor to Costa Rican real estate. But there is a wealth of potential there beyond what is available in American markets. First of all, the property in Costa Rica is prime. The government protected such a large part of the country from development that any property you buy is probably going to have either trees or a water view.
There are other benefits to purchasing land in Latin America, like significantly lower taxes. People are still often reluctant to consider investing in property or building a second home in a foreign country. Concerns about personal crime rates, language barriers, rules and regulations should not deter people from considering great opportunities in Costa Rica.
Real estate is still the most sound investment you can make, and it is becoming more so every day. With retirees cashing in their stock market-based 401ks to relieve the financial burdens resulting from lack of social security, the stock market is subject to it predicted and inevitable crash in upcoming years. Unless you are very adept at trading options in an up, down or sideways market, steer clear of the stock exchange.
When you buy land, you are buying more than a piece of paper. You will actually own something real. While stocks and bonds can’t be guaranteed to have a worth beyond the paper they are printed on, property will always have value. In a market like Costa Rica, you can safely bet on a huge return on your investment. Property there has proven to appreciate in rapid record pace.
What’s the best part about owning your own land in a tropical paradise? When you go on vacation, you really do feel like you’re home – because you will be. Put your money into something you can physically enjoy that will net you large profits when you’re ready to move on.
by David Lovendahl, Costa Vista Marketing
Costa Vista Land (http://www.costavistaland.com) is ‘developing paradise’ in Costa Rica. They purchase large quantities of raw land at discount prices and develop the properties in less than 18 months. Hence, the unique program in which investors can obtain developed land at undeveloped prices and why company president, Brad Hogan says, "We are an investment company first and a land sale company second." Parcel choices range from valleys to mountains, to beautiful coastline property. Costa Vista Land encourages investors to visit Costa Rica to view their property and will pay for accommodations, meals and transportation to do so. This lucrative program comes with 100% money back guarantee.
For more information, contact 1-877-55-COSTA or in San Jose, Costa Rica (506) 234-7509. And grab your Free 50 minute CD Now by visiting http://www.developingparadise.com
Buying real estate foreclosures means making smart investments
Real estate foreclosures or bank owned properties are one of the top categories in the foreclosures real estate market. If you are searching for an opportunity to break into the real estate industry or smartly invest your money, then you can definitely consider purchasing real estate foreclosures.
The foremost reason when saying that buying real estate foreclosures makes smart investments is the fact that nearly all of the foreclosure properties are sold at prices way below the market value. The discounts may vary from 10 to 50% of the properties original prices. As an individual, real estate foreclosures could be your chance to find your dream house within your budget. As an investor, foreclosures real estate market is undeniably a very lucrative opportunity, for short term as well as for long term investments.
The first step in investing in real estate foreclosures is understanding how this long and complex process works. Patience and vigilance are the key qualities of a smart investor. You need patience because buying real estate foreclosures does not happen over night. In most cases, it takes several months to complete the purchase of a foreclosure property. And if you don’t rush things out, maybe you even get a better price. You need to be vigilant and agile so that to spot the best deals and be prepared to sign an agreement and place a down payment.
A smart investment is always about doing your homework in advance. Therefore, research is a very important part of the real estate foreclosures purchasing process. You can do research by visiting real estate dedicated websites and consulting their foreclosure listings. The perfect start point is E-ForeclosueSearch.com, an industry expert providing quality foreclosure homes listings and comprehensive know-how services that professionals and savvy investors demand. Their huge database contains over 500,000 listings of bank foreclosures, government foreclosures, HUD homes, VA homes, real estate auctions, foreclosure homes, distressed homes and fixer-uppers, and particularly Fannie Mae homes.
Fannie Mae is a federal agency that purchases real estate foreclosures from banks and sells them to consumers at a considerable discount. Again, the best source of information is E-ForeclosueSearch.com, which provides convenient listings of Fannie Mae homes and additional help, in case it is needed, to locate Fannie Mae homes. This particular type of properties on the foreclosures real estate market is alluring due to the exceptional financing requirements. The amount needed for down payment in order to buy a Fannie Mae property is of three to five percent of the purchase price. You should investigate the home thoroughly before you make an offer to buy the home because Fannie Mae properties are sold in “as is” condition. Usually, Fannie Mae agency repairs the home but those repairs are not guaranteed.
As a general rule, when purchasing real estate foreclosures, a $1000 deposit is usually expected, and the potential customer must be able to provide the proof that he has the additional funds considered necessary to pay off the amount owed on the home. The payment required initially depends on two things, the owner of the property and the value of the property. Some banks require a minimum payment of $500, or at least 10% of the amount of your offer. In the case of real estate foreclosures, since the bank owns these properties, you have the opportunity to negotiate unique and flexible sales agreement. So, it’s high time you prove how good a negotiator you can be.
No matter the type of real estate foreclosures you decide to invest in, never forget that in the foreclosures real estate business the rewards follow the risks one takes. The higher the risks, the greater the results, including here the financial benefits. But it is advisable to calculate the risks in advance, than be sorry in the end.
A guide throughout the pre-foreclosure process
Pre-foreclosure is a tough period for a home owner, that begins when the bank or the lender starts foreclosure proceeding and ends when the bank or the lender actually takes possession of the property. In exchange, pre-foreclosures are great opportunities for real estate investors or bargain house hunters, always on the lookout for the best deal that would bring them a healthy short-term profit.
If you are buying properties directly from the homeowner, most likely you are buying pre-foreclosures or homes that have not yet legally been repossessed. Although the pre-foreclosure homes owners are usually facing financial difficulties that could lead to losing their homes, they still legally own them and have the right to sell. The pre-foreclosure process usually lasts for two to three months. In the meantime, the actual homeowners could solve their problems, pay the loan in default and have the house for themselves again. But more than often, this scenario is unlikely to happen. So, for real estate investors or bargain house hunters this is a good time to invest in the properties, especially since the property owners are highly motivated to sell in order not to ruin their credit rating. In order to successfully purchase a pre-foreclosure property, pre-foreclosures experts recommend a six step guiding procedure.
The first thing to do is to identify pre-foreclosure properties. Loans in default can be located through different means: reading the newspaper classifieds or the courthouse public notices, call up lenders or banks, or access online foreclosure service providers.
The pre-foreclosure listings need to be evaluated so that the pre-foreclosures selection to narrow down to the properties that meet your criteria and that best suit you. More than that, the gross equity in each property must be determined, because this figure also reflects the gross profit potential. If there is little or no difference between the amount of debts and the market price, you better move on to another pre-property. If there is a big difference, there might be enough equity in that particular pre-foreclosure property to bring a substantial profit.
The third thing to do is to contact the homeowner by phone, email or in person, in order to establish a meeting and inspect the property. You might need to deal with an angry homeowner, so be polite and show some understanding for his dilemma. Also, during the meeting, which has to take place at the property, you should check the loan, mortgage and insurance documents, as well as the foreclosure notices.
After seeing the pre-foreclosure property, you are now able to determine the market value, the fix-up costs, and the potential sales price and profit. Don’t forget to calculate all legitimate expenses associated with buying, repairing, carrying and selling the property. The all-inclusive figure is your offer.
State your offer to the homeowner. This bottom line figure has to pay the homeowner for his property and generate a profit for you. Don’t expect everything to go smooth. You need to negotiate with the homeowner and the lender. Usually, pre-foreclosures discounts off market can range from 20% to 35% on average. With the lenders you can work out flexible sales agreements and low cash down payments.
After you reached an agreement with the homeowner and the lender, it’s time you close on the pre-foreclosure property and start the repair or refurbishing works. Have the property prepared for re-sale. Or you could keep it and rent it out so it brings an extra income for you.
If done correctly, buying pre-foreclosures can be a great investing opportunity. Finally, if everything goes well, you paid the money for a pre-foreclosure property way below the market price, in a good neighborhood, a property that you can sell or rent to produce a positive cash flow.