Short Sale...the term makes many lenders and real estate professionals cringe.  However, there are many success stories that started off with that term.

A short sale is, in short, a way out of foreclosure. When a lender will accept less money for your home than what you owe, it is considered a short sale.  An example would be:  The unpaid balance of a mortgage is $150,000 the home/property sells for $100,000, with a short sale the lender accepts the $100,000 as payment in full.  Seems simple enough, right?  Well, it can be.  Following a few simple tips can make a short sale seem like a walk in the park!

Financing a short sale is a little different than financing a "typical" sale.  One tip would be to purchase "below your means".  Don't use your pre-approved loan to the max, make room for some flexibility. Short sales can take a bit of time to for approval, during this time interest rates fluctuate.  If the rates jump up, you could find that you are no longer qualified to purchase the home that you are looking at.

Another tip when financing a short sale is to be certain that the lender can guarantee a 30-day closing.  Many banks want to close within 30 days of approval, however if your loan requires a longer approval period, you may not be able to close in time and your approval will expire.  

Also, you should ask your real estate professional to inspect the home and discuss any issues in advance as many lenders have loan conditions.  Some loans require pest reports and repairs before agreeing to finance.

Taking a little time ahead of time can really make your short sale experience enjoyable and timely.
 

We need to make everypossible buyer of how low the interest rates are, the availity to buy house and not having to make a lot of money. A low priced home with a super low interest rate equals in payment to a small apartment in town.
WHY RENT IF YOU CAN BUY?

Puerto Rico is a fantastic option for people looking to buy investment property. It is already a US territory, which makes the process of buying property a little easier. Nonetheless, Puerto Rico is a separate nation and has laws governing the buying and selling of real estate that you need to understand for an effective buy.

The office that governs property taxes in Puerto Rico is called CRIM (Centro de Recaudacion de Ingresos Municipales). This is a centralized board that has offices in each region. When you buy a property here, you have to contact the local CRIM office for information on how to properly pay real estate taxes.

Currently the tax rate in Puerto Rico is a flat levy of 1.03 percent. Additionally you wll pay 1 percent more for the value of all personal property within the home, and three percent for the land value. CRIM is well within its rights to reassess values at any time and will sometimes backdate adjusted taxes. Needless to say, this makes things a little confusing, which is why depending on the local CRIM department is nothing less than essential if you want to own property here.

On the upside, Puerto Rico is only 1,000 miles away from Florida, making it easily accessible by plane. The island’s Latin flavor, warm beaches, championship golf courses, coral reefs and surfing – well, there’s really something for everyone. If you buy a home here specifically for renting to vacationers you should have no trouble keeping it booked. Just remember to leave a week for yourself in the winter!

This daily changing market is making harder and harder for a "smooth" transaction. The first step for a buyer, as I am sure you know, is to get pre-approved. Be sure that you have given all the financial information they have requested and you have to disclose everything because it all comes up at one point. Make sure you are comfortable with the mortgage processor and if possible, go to somebody that a friend or someone you know has recommended. A lot depends on how the mortgage processor looks at the information you gave them to make a realistic determination of what you will qualify for. They should be asking you a ton of questions. It is better to find out now before you expend money on inspections, get all excited about owning a home, to find out something comes up and you can't close on this house.
The next step is to find a realtor who really has your interests at heart. They should be asking for what you qualify for, researching the homes fitting in your criteria, and the first time out gives everyone a better overview of what the prospective buyer likes and dislikes. There are many different types of transactions and they have to be familar with the process. You may be buying a foreclosure, short sale or doing an arm's length transaction (the easiest of all). There are timeframes that they have to be aware of and they have to have constant "communication" with the listing agent, the lender and the title company. There are a lot of behind the scenes work that buyers are not aware of and your realtor needs to stay on top of it. There are many programs out there to help teachers, county workers and others, but your realtor has to be "educated" on these programs, as well as your lender.
We sell in Hernando County (Spring Hill, Brooksville and Weeki Wachee) and the prices and interest rates are at historic lows.
Good Luck and get out there to buy that house!
 

I was reading an article this morning provided by Investopedia and they listed the ten worst first time homebuyer mistakes. We want to make sure you don't make any mistakes when in the process of purchasing your home, so here are the mistakes to avoid:
(1) Make sure you can afford it; know your expenses; (2) go to a lending institution for a mortgage qualification because the banks are not as lenient as they were and you may think you know what you can afford; but the lending institution may think otherwise; (3) Remember to include additional expenses as a homeowner - you will have maintenance, property taxes and repairs; (4) Being too picky - remember you can change the wallpaper; (5) Not seeing the vision - small things can be changed and it doesn't have to be immediate; (6) Don't be fooled by upgrades - don't spend more because it had a stainless steel appliances when you can't afford it; you can possibly purchase a price much less and do it down the road; (7) Don't compromise on important items - if you know you need a 3 bedroom; don't settle for a 2 bedroom because that is a costly mistake; (8) Have a home inspector - this $275.00 item can save you thousands; (9) have an "educated" realtor because they will help you and look out for your best interests and (10) Check out the neighborhood - find out what might be coming in the future; call the Sheriff's Office.
We will always keep you posted! Have a great day and enjoy!
 

Some people focus on using real estate as a means of earning an income by buying distressed properties at a good price and then fixing them up for resale. As one might gather, this isn’t as simple as it sounds. Many such properties require more than a coat of paint and TLC. That means you have to look really closely at calculations before you purchase anything.

The general rule of thumb in flipping is that you want properties that list at 20 percent below the area’s market value for that housing type and location. The best time for seeking such homes is during a buyer’s market when real estate is “soft” and sellers more anxious to move their properties.

Even at a good price if the property isn’t in relatively good condition, say “no.” Until you get experienced with flipping and know the problems for which to look that could break the bank, avoid buying such properties unless you have someone you can trust to review the property. What are the biggest expenses? Water damage, hidden structural issues like wood ant nests, bad roofing, and old electric or plumbing lines.

If you need three months or less to flip a property – that’s ideal. Take your purchase price, add in repairs and then give the house a reasonable mark up based on the current market. If you want the house to sell quickly, you know you’ve done a GREAT flipping job if you can price it below market costs and still make money. By the way, don’t forget to add in the monthly mortgage cost on the house, insurance, closing and the cost of advertising the house when it goes back on the market.

It’s said that buying a home is one of the most stressful decisions in a person’s life alongside getting married and moving. In most cases you’re looking at a 30 year commitment to a building and community. That means you want to find the right home at an affordable price. Doing so can feel daunting, which is where an experienced real estate agent comes in handy.

Ask them questions about the property that will help you in decision making. For example, how long as the property been on the market? The longer a seller has tried to move the property, the more anxious they become. You can come in on long-sale properties with a lower bid and potentially get considerations on closing too.

Second, find out if there has been any difficulty with escrow on the property. This is potentially a red flag that may indicate issues with the house or land that aren’t readily visible. Or, it could indicate a previous potential sale that went south. Both scenarios affect purchase price, as does the home’s overall condition. How old is the roof? What kind of plumbing exists? How recent is the wiring? Most buyers who intend to live in a property don’t want to have to walk in and spend months fixing it to specs. However, to get homeowners insurance an inspection and code repairs are necessary.

Next on your list – find out about other fees. If you’re buying a condo there may be association fees on top of your state and school taxes, for example. Keep those add-ons in mind when looking at your bottom line.

Does the property have any easements? Your local building department can locate this information for you. An easement gives someone else use of a specific area on your property. A good example is an easement for a fence. However, you want to know exactly what can and cannot be done in that space before you wake up to a chicken coop.

Asking questions like these help you buy smart. You want your money to go a long way in home buying. Don’t be afraid to keep asking questions until you know everything you need to make an informed decision.

There are programs out there to help first time home buyers get the home of their dreams. Combine that with the availability of incredible deals and you've got a winner.
One program matches your down payment 2-1 - if you put $500 down, they give you $1500 towards closing costs. Some programs require a class but that can only help you.
A lot of the homes today need repair in order to qualify for an FHA loan. There is an FHA loan that can help you get the money needed for the repairs and roll it into your mortgage.
Talk with a Buyer's Agent today about all the possibilities for first time home buyers. It costs you nothing to use a Buyer's Agent and you get someone looking out for YOU!

Even though beachfront property is usually a great investment prospect, finding just the right parcel of land can prove tricky. On one hand, just buying land means less expense. Now you can build to your personal specifications. On the other, there may be reasons that the land has gone on the market that could affect future sales potential, not to mention your security and the way you design your new home.

With this in mind, step one in the journey toward owning waterfront land is finding out why the owner is selling it before development. Ocean front properties are a “hot” commodity and open land doesn’t become available every day. If the market is soft, it may simply be that the owner didn’t have development funds. However, there are other possible reasons that the land remains vacant. These reasons might include zoning laws (that would likewise apply to your plans for the land). What else might prohibit building? Endangered species (plant or animal), sinkholes, and erosion come immediately to mind. Don’t sign any paperwork until you investigate thoroughly.

Utilities can also really hinder development. If you can’t get easy access to water, sewer, gas or electric, the cost to install special alternatives can be incredibly prohibitive. What about cable or satellite too? Contrary to impression, satellite does not reach EVERYWHERE. Too many trees can block the signal, or if you’re in a remote location you may simply be out of signal range.

A third problem that can easily happen with beachfront properties is that other landowners decide to develop near you, in ways that you might not like. Whether you want to live there or rent your space, having a super-store go up and block the otherwise pristine view isn’t going to help your property values. Nor will a hotel. While it’s all but impossible to plan for every contingency, keep these possibilities in mind.

Fourth, make certain your real estate agent knows the laws governing investment property where you plan to buy. For example, if you plan on living in the home part of the year, you may find an ordinance limits how often you can be in the home if you rent regularly. Additionally, a good realtor can help you find likewise good tenants who will take care of the property when you cannot be there.  All potential tenants should be properly screened, provided with the rules of the roost, and pay a suitable security deposit just in case.

Finally once you find a good piece of land and develop it, maintenance becomes a very important part of the equation. You have prime real estate here, and it’s worth keeping it in good condition. Keep the smoke alarms and fire extinguishers current. Take care of the lawn and grounds so it attracts return renters. Install security measures for those times when the house remains unoccupied. These are small, common sense things that support your success as a landlord.

When the stock market gets soft, some people begin looking to invest in real estate. Having said that, not everyone is cut out for being a landlord, or for buying and selling homes as a commodity. If you’re considering moving in this direction, take a little time to learn the ropes.

If you’re a small investor plant to own whatever investment property you choose for at least 10 years. This helps insure potential appreciation that isn’t wholly offset by ongoing maintenance and repairs. During that time the real estate market will have its ups and downs, but you’ll have plenty of opportunities to sell should you ever wish to. Additionally, knowing your time framework helps you determine how much you want to spend on the house initially and what the rent values should be in order to bring in supplemental income.

Overpaying for property is the worst proverbial sin in using real estate as an investment. There’s no perfect way to calculate what equates to overpaying. What you really need to be certain of is that all your costs for owning the property including potential repairs and vacancies is covered by the rent you plan to charge. Work with the numbers several ways before singing on the dotted line of a mortgage. If those rents get too high – you won’t have any renters!

Hint: get a house inspection. That will give you a good feel for repairs that need to be done NOW to get the property ready for renters, particularly fixing any code violations. Those costs are part of the financial overview for calculation purposes.

Note that when you’re first buying a rental property it’s good to start small. Give yourself time to learn the ins and outs of securing rental property and uncovering good tenants. If you find success with that one property then you can consider more. At that juncture you’ll want to begin networking with agents, family, investor groups, etc. all of whom can help you land great properties at the best possible prices. Some investors try approaching owners of rentals and/or abandon properties to see if they’re interested in selling too. A motivated seller usually means better buying power. Another option still for good prices are foreclosure properties.

Warning: expanding your rental properties is very difficult if you’re carrying a high interest to debt ratio or if your credit rating is iffy. Those factors mean either big down payments or very high rates of interest (that, in turn, raise your rent). Over-valued rent decreases the chance of full occupancy, and undermines the bottom line. When your debts or credit rating aren’t the best, you can consider land contracts or leasing for a while instead. That gives you time to restructure your finances.

From a financial management point of view, rental properties should not be your only form of investment. In general diversification is the key to having a balanced portfolio, let alone one that makes money for you. Find equities, bonds, etc. with comfortable risk levels and add them into the mix. This acts as a buffer for those times when the real estate market drops.