Archive for October, 2007

Benefits of Loan Modification #2 – Tips For Real Estate Sales For Bigger Profits

Wednesday, October 24th, 2007





By David George

For any real estate investor, the overall importance is how to make the most profit. It is not about how much you sell the place for however, it is about how much profit you make. Two investors can buy two houses on the same street for the same price and sell the houses ten years later for the same price. Investor one made a profit of $200,000 while investor two made $50,000 less. The reasons may seem odd, there are things to account for like the second house needed more work, or maybe had some additions put in like a new swimming pool or something.

The fact is that even if the houses were sitting empty for ten years, the difference in profit can be blamed on the loan and if it was modified. If both people made their purchase even five years ago and got a great deal on them, and then had identical payments each month, person one could have modified the loan after a couple years to get the payments lower.

Loan modification allows you to lower the interest rate on a mortgage, as well as negotiate for a smaller term of payment, in all someone who gets approved can owe thousands of dollars less, even if they are not having a problem making the payments on time. That is why person one was able to make more money, he or she were simply paying less each month and that allowed them to have a bigger profit number when the house was sold and the project was complete.

If you are interested in loan modification you need to be aware that it is not easy to get approved. There are loan modification companies that are available, many of which have a great tract record of getting applications approved, and approved fast. It is well worth your time to at least look into it, you can save thousands of dollars.

Real estate investment – do’s and don’ts

Monday, October 22nd, 2007





Commercial Real Estate – Avoiding Common Pitfalls

Friday, October 5th, 2007





Commercial real estate as an investment can provide great returns, but it can also cause some serious headaches if you do not do your homework and go into the deal with your eyes wide open. Commercial property can include residential multiplexes and apartment complexes as well as more traditional business and warehouse buildings. Whether you are buying commercial real estate for profit or simply to house your own company, before you buy you should do all you can to avoid the following common pitfalls.

Have a Thorough Title Search Performed

Before making any real estate purchase, whether it is residential or commercial it is essential to get a complete title search to identify any liens or other problems with the title. The title of a property is basically the history of the deed changing hands and whether or not there are any unresolved claims to the deed by previous lenders or contractors.

A title company can research the entire history of the deed from the first loan ever made on it and make sure that any liens against the property have been paid off. They also need to make sure that no one has prior claim on the property because loans or services were not completely paid for.

Understand All the Loan Terms

There are many important terms and clauses included in a commercial real estate mortgage contract. Some of the fine print may interfere with your plans for the property.

For instance, many real estate loans require you to keep your net equity up to a specified level at all times, and other call for large financial penalties if you pay off your loan, either by paying off the principal or by refinancing, before the designated years are up.

Be sure you understand exactly what your lender is requiring of you and that the terms match your own desires as well before you sign your name on any dotted lines.

Avoid Zoning Problems

There are lots of laws and statutes governing the use of land for certain purposes. If you want to operate a business in your commercial real estate, you will obviously need to make sure to buy a property in an area that is zoned by the city for business.

You should also check the surrounding areas to see how they are zoned and if the location is accommodating enough to bring in all the traffic and customers you are hoping for.

Plan for Market Fluctuations

There are no guarantees in the real estate world. The value of both residential and commercial properties is subject to ups and downs based on economic conditions and on changes in nearby development.

You have to be prepared for fluctuating tenancy rates if you use your real estate as an investment property, or for possible changes in customer base and the values of properties around yours.

All of these factors influence the worth of your real estate as well as your ability to make your mortgage payments. Make sure you choose a property that you can easily afford even during months (or years!) when the economy is not in your favor.