Classes In Real Estate

Turn the Television on any Sunday morning and you’ll find yourself in the middle of a “how to buy real estate” infomercial. Can you really buy a house with no down payment? Can you really make thousands or millions of dollars buying real estate. Of course the answer is “yes” and “no”. The real question is, are you willing to pay anywhere from $500 to $5000 for the information, classes and hotline? Most important are you self disciplined enough to follow the program.

Before you spend money on these expensive programs, here are my top ten “no money down” ways to buy real estate. If you’re self disciplined and willing to hear the word “no” many times before you get a “yes”, then maybe you can buy a house without a down payment.

1. First is to check out the many new zero down programs now available from lenders. Especially if you’re a fist time buyer. Also FHA and VA have loans that may not be zero down, but are very close.

2. Borrow money for the down payment - Borrow the money from family, friends or a business partner at a high interest rate or a percentage of the profit when the property is sold

3. Raise the price and lower the terms - Offer the seller more than he is asking provided he is willing to accept the down payment in the form of a note. If the seller is asking $150,000 with $15,000 down and willing to carry the balance of $135,000. Try offering $155,000 in the form of a promissory not instead of cash. The seller gets a little more money for the additional risk.

4. Borrow against a life insurance policy - Many life insurance policy’s let you borrow against the policy for the purpose of investing in real estate or other investments.

5. Use other property as collateral - Create a note on existing property that you or a partner own and use it as the down payment for the property you are buying.

6. Home equity loan - Home equity loans are generally easy to qualify for as long as there is adequate equity in the property.

7. Seller refinance - Have the seller refinance the property, receiving the cash he needs from the proceeds of the new loan, the buyer gives the seller a note for the balance of the seller’s equity.

8. Find an investor - There are many people who have money but no time. Their current profession keeps them too busy. Work out a deal where they put up the money and you split the profits when you sell.

9. Lease with option to purchase - Lease a property with the right to buy it at some future time. Provide for the rental payment to be credited towards the down payment if you decide to exercise your option.

10. Give them something they need - If the seller is planning to purchase something in the future that you own or can buy, use it as a trade. This can be anything such as furniture, boat or motor home.

About The Author

Richard Massey is a note broker with United Financial Resources and a real estate investor. You can get more information at http://www.unitedfinancialresources.com or to read more articles go to http://unitedfinancialresources.com/news.html

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The first thing most of us think about when the time comes to take out a mortgage on a new home is the interest rate.

That’s both perfectly natural and very sensible. The rate of interest we pay can make an immense difference - a difference amounting to tens of thousands of dollars - in what the actual cost of our house ultimately turns out to be.

Still, interest rates are far from the only thing worth thinking about where mortgages are concerned. Other important variables need to be considered too. One is the question of whether to take a fixed interest rate of choose from among the many kinds of variable-rate mortgages that have been created over the years to meet the differing needs of different buyers.

Another - and a very important one - is the rather basic question of how long you want your mortgage to run. Even with fixed-rate mortgages, a broad spectrum of time spans is commonly available. In most cases the extremes are 15 years on the short side, 30 years on the long.

Some years ago, when a famous scientist was asked to name the most powerful force in the universe, he answered “the power of compound interest.” This reply suggests that he was knowledgeable not only about the laws of nature but the principles of finance - about what happens to even a modest sum of money when it continues to accumulate interest year after year after year.

Even at a modest rate of interest, money in a savings account can double within ten years or less. The amount actually paid for a house with a $100,000 mortgage can turn out to be several hundred thousand dollars if the mortgage runs for 30 years.

When you opt for a mortgage of only 15 or 20 yeas, on the other hand, you chop off much of the growth in your total obligation. But to do that without reducing the initial size of your mortgage, you have to make a bigger payment every month. As in most of life’s major decisions, the stakes are high and the trade-offs require careful consideration. Above all, they require a careful examination of your resources, your aspirations, and your personal priorities.

Someone who’s willing to make near-term lifestyle sacrifices for the sake of long-term gains probably will prefer a shorter mortgage. If your motto is “eat, drink and be merry,” on the other hand, the idea of squeezing extra money out of your budget for the sake of a bigger house payment won’t have much appeal.

If you’re attracted by a shorter, faster mortgage and think you might be able to handle one, ask your real estate agent to show you just how much long-term savings such an approach can make possible. Chances are you’ll be astonished by the size of the number.

Remember, though, that a 15-year or 20-year mortgage, by increasing your monthly obligations now and for years to come, can sharply reduce your flexibility.

One good approach is to take a 30-year mortgage but try to discipline yourself to make one extra monthly payment each year. If you can stick to such a regimen, ultimately it will yield the benefits of a 15-year mortgage. Meanwhile, you’ll be less strapped if changing circumstances reduce your ability to make monthly payments.

What’s really important is making yourself aware of how many different options you have and gathering detailed information about the ones that interest you most. A good real estate broker can be your key to all the information you could possibly need.

About The Author

W. Troy Swezey is the author of “HOW LONG YOUR MORTGAGE RUNS DETERMINES HOW MUCH YOU PAY.” As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, “REAL ESTATE SECRETS EXPOSED.” http://www.TroyIsMyRealtor.com or mail to: TroyC21@usa.net

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Maybe you’re moving to a larger home to accommodate a growing family, relocating for a new career opportunity, or purchasing a townhouse for retirement. Whatever the reason for the move, you’ll need to take the necessary steps to sell your home for the best possible price, within a reasonable amount of time. Where do you begin?

If you’re like most people, you’ll start by seeking assistance from a professional. A local real estate sales associate, who knows your neighborhood, can help you determine a fair market price. The sales associate should also recommend the extent to which you should make repairs or improvements to your house.

In order to select a real estate professional who’s right for you, ask family, friends and neighbors for referrals. Attend open houses and interview several sales associates to find out how professional or experienced they may be. Get a written outline of how they plan to market your property and the services they will offer you.

Once you’ve identified a qualified professional, the rest is chemistry. Is the sales associate someone with whom you would like to work closely? Do you feel comfortable with the sales associate as your partner, working with you to give you advice and acting as your representative? Does he or she practice a consultative selling approach, focusing on the long-term client relationship and on the importance of exceeding client needs and expectations or is he or she caught up in the proverbial ‘hard sell?’

The brokerage firm that your agent is associated with is also important. Research the firm’s success rate and commitment to quality service. Does it survey existing clients in order to ensure customer satisfaction? What are the results of those surveys? How in tune are they with consumer needs? Do they offer guidance with mortgages or any discounts for other home related or moving services?

“To be competitive in today’s real estate market, as agents, we have to offer the buyer/seller products and services above and beyond the sale. That’s why the CENTURY 21 System has established partnerships with various companies that allow us to offer everything from mortgages to moving services. This Preferred Alliance Services Program has enabled us to satisfy a consumer need while maintaining a high-level of quality service.

Determining your home’s fair market value is one of the most important decisions you’ll make during the home-selling/buying process. Your sales associate can help you set a fair price based on local market conditions. For instance, she or he will provide sale prices and other statistics of homes similar to yours that have recently been sold. Prospective buyers will be comparing your home to others on the market. Therefore, setting a comprehensive price can determine if your property will or will not sell.

For the first offer made, it’s rare that the prospective buyer matches the asking price. If the offer is reasonably close to the asking price, carefully consider the offer before you consider turning it down. Curiously, it’s the first offer that can often be the best offer. If the first offer is unacceptable to you, it may in your best interest to have your sales associate respond with a counter offer. Whenever considering an offer, ask yourself if you would purchase the property for the amount being offered. Always be willing to negotiate, especially if the prospective buyer is pre-qualified for a mortgage.

Once you decide what terms are acceptable, let your sales associate negotiate with the prospective buyer to work out the best agreement for you. You’ll need to be patient while the buyer arranges financing and as the real estate company compiles and prepares pertinent data.

Careful planning and sound advice from a real estate professional can make selling your home a very satisfying experience.

About The Author

W. Troy Swezey is the author of “MOVING ON: POWERFULTIPS FOR SELLING YOUR HOME.” As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, “REAL ESTATE SECRETS EXPOSED.” http://www.TroyIsMyRealtor.com or mail to: TroyC21@usa.net

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