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Do you know how to successfully navigate the current Florida real estate market? Do you know how to get the most for your money, and how to avoid unexpected costs? Have you researched the benefits of newly constructed homes vs. existing homes? Do you know how much home you can really afford?

Smart home buyers can answer each of these questions in the affirmative, and have thoroughly researched facts to back up their assertions. Smart home buyers take their time when preparing to purchase a new home. They do their homework, learn the real estate market, and know how to increase their chances of finding their perfect home. These preparations lead to better home buying experiences and help to ensure that you purchase the right home for your needs.

Increasing your home buying IQ

If you answered “no” to any of the questions listed above, there is no need to worry. It is easy to become a smart home buyer. It merely requires a bit of planning and preparation. Even first time buyers can greatly improve their home buying experience by taking a few simple steps. These steps are easy to follow, and best of all, require no monetary investment.

Get to know your finances

Before beginning your search for a new Florida home, you should thoroughly assess your financial situation. How much home can you really afford? Do you have good credit? Do you qualify for first-time home buyer incentives? Obtain a copy of your credit report, take stock of your monthly income vs. your monthly debt, and find a reputable lender. Once you have completed these initial steps, you will have a much better idea of what you can afford, and can begin the application process to obtain pre-approval for a loan.

Study the current housing market

The fastest way to learn about the housing market in your target area is to actually drive through each neighborhood of interest and take note of how many homes are on the market. If flyers are available outside homes you like, be sure and take one. These flyers often give information on square footage, number of rooms, amenities, and price. These important details will help you determine your target neighborhoods and give you an idea of where you may be able to find a great deal.

Interview local home builders

Some home buyers mistakenly assume that they can not afford a newly constructed home, so they eliminate home builders from their list before doing any research. The smart home buyer knows that newly constructed homes can be obtained at reasonable prices, and they offer the home buyer a level of security and peace of mind that existing homes can very rarely offer.

When you purchase a newly constructed home, you don’t have to budget for repair costs. You have more freedom to choose the type of home and decor you prefer, and home builders regularly offer specials which make a brand-new home much more affordable than you may think.

Choose an existing home with care

If you decide to purchase an existing home, knowing how to spot costly repair projects is a must. Study the effects of the Florida climate on an existing home, and be competent at recognizing signs of flood damage, wood rot, insect damage, outdated plumbing and electrical systems, and roof damage. If you find a home that appears sound, still proceed with the inspection process and have a professional confirm that no costly renovations will be required.

Finish at the head of the class

When it comes to purchasing a new home in Florida, preparation and research can and you time, money, and increase your odds of finding just the right home for you and your family. By obtaining a thorough knowledge of your finances, buying power, target neighborhood, and all of the housing options available to today’s home buyer before you begin your new home search will put you among the ranks of the smart home buyers.

Real Estate Palm Coast Fl - Tom Beaty a real estate broker and home builders in Palm Coast, Flagler and Volusia County. Visit: Real Estate Palm Coast Fl or Florida Home Builders

Purchasing a new Florida home can be a fun and exciting process. With numerous homes for sale in various price ranges, today’s real estate market is heavily skewed in favor of the buyer. Sellers are offering incredible incentives, Realtors are working harder than ever before to make their buyers happy, interest rates remain low, and banks are eager to lend money to responsible buyers with good credit.

Today’s Florida home buyer can take their time, explore target neighborhoods, and find the perfect home to suit their needs and their budget. It is, however, very difficult to find the perfect home if the buyer is not prepared. In fact, the primary focus of any Florida home buyer should be to learn as much as possible about the current housing market, and most importantly, about pitfalls the Florida home buyer may face.

Potential pitfall number one: Overestimating your budget

The very first step every Florida home buyer should take is to do a thorough analysis of their personal finances, and of all the costs associated with owning a home. This will help to determine how much home you can truly afford and eliminate any unpleasant surprises.

After taking stock of your monthly income, monthly debt, and credit rating, you should have a good idea of how much money you can allocate to a house payment. A few additional costs you may want to consider are insurance costs, taxes, and lender fees. This is a good time to find a mortgage lender and obtain pre-approval for a loan.

A pre-approval is a solid estimate of how much a bank is willing to lend, how many points (if any) they will add, and an estimate of the interest rate they are willing to offer. Once you have this, you can calculate monthly payments and insurance costs, and determine with reasonable certainty how much home you can afford.

Potential pitfall number two: Realtor remorse

A Realtor can, quite literally, make or break your Florida home buying experience. This is why it is so important to take your time when selecting a Realtor. Ask friends and family members for recommendations, or at the very least, visit several agencies before making your final selection. It is very important to find a Realtor who listens carefully to determine what type of house you are looking for, and the price range which best suits your budget.

If a Realtor immediately pushes you toward a home outside your price range, does not thoroughly answer all of your questions, or simply gives you the feeling that they are not truly listening to what you want, move on. If there is anything about an agency or agent that makes you feel uncomfortable, trust that feeling and continue your search elsewhere.

Potential pitfall number three: Hefty repair costs
Failure to take repair costs into account when purchasing a home can lead to serious problems for the Florida home buyer. If you decide to purchase a home that is at the top of your price range, you should be reasonably certain that the home will not require any major repairs. The Florida climate can be brutal on homes, which means that a thorough home inspection is of vital importance before any home purchase.

Home inspections can be costly, so learning about potentially expensive repairs and how to spot potential issues in a home can save money by eliminating prospects from your list before they ever reach the inspection process. A few things to look for are cracked foundations, rotted wood, outdated plumbing and electrical systems, and signs of mold or flood damage. Also consider that if you purchase a newly-constructed home, there is no need to worry about repair costs. Everything is brand-new, and most builders offer a home warranty.

Finding the perfect home

The preceding list is by no means exhaustive, and there are many other ways in which a Florida home buyer can prepare themselves to purchase a new home. These are simply a few of the major pitfalls you can avoid as a Florida home buyer, and the suggestions will help you to better navigate the Florida housing market. By making these simple preparations and taking a few necessary precautions, you will be well on your way to finding your perfect Florida home.

Real Estate Palm Coast Fl - Tom Beaty a real estate broker and home builders in Palm Coast, Flagler and Volusia County. Visit: Real Estate Palm Coast Fl or Florida Home Builders

People talk about running the numbers before buying an investment property, but before doing that we need to discover what are the numbers and how do you get accurate numbers. Running the wrong numbers can make the difference of making $500 or losing $1000 per month. In this article we will go through the costs and factors to consider to make your investments successful.

RENTAL INCOME

Rental income is not as straight-forward as it seems. Sometimes properties are under-rented and sometimes properties are over-rented, so be sure to find out the market rents when you consider a property. When we bought our first fourplex, we looked at comparable leases and realized our rents were too high, so instead of assuming we would continue to receive $3600 of rental income, we had to be realistic and assume it was more like $3200.

MORTGAGE INTEREST

A huge cost is mortgage interest. You should definitely sort out the details of your loan options and get an idea of current rates before running the numbers. It could make or break a deal. If you are getting a duplex or a house, the loans are generally similar to other home loan programs. Triplexes and fourplexes tend to have higher rates, and commercial is a whole other ballgame. One thing to consider is to put more down because the more you put down, the less your loan will be, which means less monthly interest to pay. Another consideration is the type of loan. We usually recommend for people to get a fixed rate mortgage these days because the current ARM (adjustable rate mortgage) rates are not all that much lower than fixed rates.

Basically, just get educated about the loan options and run the numbers with them. Oh, and also, do not just take advice from one mortgage person. The best way to get educated is to talk to a variety of mortgage brokers and banks to find your best solution; not all loan places have the same programs.

TAXES

People frequently use the taxes from the year when they purchased the property, assuming the taxes will stay the same. Taxes change every year. Taxes can go up drastically after a purchase. For example, an owner occupied property usually has tax breaks, so unless you intend to owner occupy too, your taxes will go up.

Also, the county appraisal that your taxes are based on could go up after your purchase. For example, if you buy a property for 100,000 but the tax appraisal last year was for 50,000, don’t count on it remaining at 50,000. In fact, I have seen cases where a year after a property was purchased the tax assessor increased the appraisal value to the purchase price. The safest approach is to look at the tax rate and the purchase price to determine your future taxes.

VACANCY COST

For some reason people tend to forget to take into account vacancy rate. Even when looking to invest in a desirable rental area, it’s best to always take into account at least an 8-10% vacancy rate. Do some investigation, look at your market and find statistics on the average vacancy rate.

TENANT TURNOVER COST

We have personally found the biggest surprise to be the expense of tenant turnover. This includes advertising for a new tenant, cleaning, repainting, replacing carpet, etc. If you expect to have high tenant turnover, like next to a college campus, anticipate this to be a significant cost.

INSURANCE COST

Insurance on investment properties are typically higher than owner occupied, single family properties. So get an insurance quote on the property instead of basing your expected insurance off of the insurance bill for your house. You also should purchase liability insurance which can be expensive.

MAINTENANCE COSTS

This is by far the most difficult number to estimate. It depends on the property, whether you fix some of the problems yourself or hire outside help, and random luck. So we can’t give you a hard and fast number but we can look into different factors to take into account.

**Property Type - When you evaluate different properties remember to take into account the type of property. If it’s brick you won’t have to paint or worry about wood root. Decks need constant maintenance. A property with wood or concrete floors will be easier to clean and will not have to be replaced when a tenant moves out. Just think about the aspects of the property and their maintenance costs.

**Property Size - A smaller property is easier to maintain than a larger property. For instance, say there are two properties for sale for 200,000 and each have a combined rent of 2000. A property with 2 units and a total of 1000 square feet will be cheaper to maintain than a property with 6 units and 3000 square feet. The larger property will be more expensive to maintain when you are replacing the larger roof, painting the interior walls, etc. Also, more units mean more money spent on advertising, make-readies, and more appliances to repair.

**Property Location - Consider your proximity to the property. If you buy a property 30 miles away, over the course of a year you can spend a decent amount of gas money driving back and forth.

**Your personal management style - How often will you do maintenance work yourself vs hiring help? For instance, when a unit needs painting will you paint the rooms or hire a painter? Hiring professionals is definitely more expensive, but you have to be realistic about how much you will personally do, especially if you are looking at a lot of units.

UTILITY COSTS

Be sure to check what the tenants pay for and what the owner pays for. This includes all the utilities and lawn maintenance. In addition, there may be owner expenses like parking lot lights and trash bin service.

PROPERTY MANAGEMENT COSTS

If you are going to hire a property management company, definitely get their rates. We personally choose properties that we can manage ourselves.

SUMMING THE NUMBERS

Once you add all the numbers up, you often find the property has 0 cash flow or even negative cash flow. This doesn’t necessarily mean you should not purchase the property. There are positive tax benefits to rental properties and depending on your situation, a property with technically 0 cash flow could still put more money in your pocket due to tax benefits. Also, if you think the property is going to appreciate in the future, a zero or negative cash flow property could still be appealing.

The point here is that if you are buying a property with zero or negative cash flow, it’s best to know beforehand instead of after the property has been purchased.

Located in Austin Texas Austin Real Estate offers potential investors with advice and expertise about the Austin Real Estate market. Their website offers a free Home Search of the Austin MLS along with description of the different downtown Austin Condos

In view relevant of the provisions, which include the US Canada-US tax treaty of 1995, Canadian residents (not those who fit US resident criteria) buying property in the US must do their tax planning accordingly.

US income tax, estate tax and various other laws treat foreign nationals on different footings depending on whether they have a US resident or non-resident status. US laws lay down certain criteria to ascertain resident/non-resident status.

A citizen of Canada is subjected to two tests to determine his/her residence status for tax purposes.

One- if he holds a US green card he is treated as a lawful permanent US resident. His presence /absence in the US is not considered. And

Two- If he had a substantial presence in the US he is treated as a US resident. This means being present in the US for 183 days in the preceding three years in the following manner.

. If he has been present in the US for at least thirty days during the current calendar year

. If the sum of the number of his US days in the current financial year, 1/3rd of US days in the first preceding year and one sixth of US days in the second preceding year equals or exceeds 183 days.

Factors like inability to leave the US due to ill health or being present as part of a govt. delegation and certain other exceptions are taken into account while calculating the total of 183 days mentioned above. Even when substantial presence is established, meeting certain other additional criteria may still attach a non-resident status to a Canadian citizen.

A US resident alien is treated more or less similarly as a US citizen for tax purposes. He has to file tax returns and pay taxes on income received from all sources in the US and/or anywhere in the world. The resident status entitles him to all the deductions, personal exemptions and other benefits available to US citizens while computing taxable income.

A non-resident on the other hand, subject to certain exceptions, usually has to pay tax on income he receives from US sources only. In addition, his non-resident status and limited tax exposure make much less of exemptions and deductions available to him as compared to his resident counterpart.

When a Canadian resident buys a condo in Florida or other real property located anywhere in the US and rents it out, there is a withholding tax of 30% applicable on the rent. This means that the tenant is liable to withhold 30% of the rent and pay it to the IRS. By filing a US tax return and paying tax on the net rental income, the 30% gross withholding tax can be avoided.

There may be significant expenses such as maintenance; property management expenses, mortgage interest, property taxes etc. that can reduce the taxable amount considerably, and the resulting tax at marginal rates can be substantially lower. Once the net rental system is elected, it usually cannot be revoked. The Canadian property owner needs to provide the tenant with form IRS 4224 to avoid deduction of 30% withholding tax.

When a Canadian resident sells any property that he owns within the US, the Foreign Investment in Real Property Tax Act-1980(FIRPTA) mandates a 10% withholding tax on the gross sale price. However, it is possible to offset this tax against US income tax payable on any capital gain on the sale. A refund can be claimed if the withholding tax is above the tax liability.

This provision is subject to two exceptions.

a) When the property is sold for less than $300000 and the purchaser intends to use it for his principle residence for at least 50% of the time for the next two years he pays the full price to the seller instead of withholding 10% to remit to the IRS.

b) When the seller obtains a withholding certificate from the IRS stating that US tax liability is expected to be less than ten percent of the sale price. The amount of tax to be withheld, if any, would be mentioned on the certificate.

When a Canadian resident breathes his last owning property in the US, federal estate tax is imposed, which can range from 18 to 45% in 2007. Under article XXIX B of the Canada-US tax treaty, unified credit can be applied to reduce or eliminate estate taxes.

Sacramento CPA firms offers Estate Tax Planning to individuals and businesses. We have former IRS auditors who know the system to make sure you only get the best advice. Discover a bevy or articles at : http://www.april15.com.

Mallorca or Maiorica meaning Major Island as it was previously known has been a sort after tourist destination for many years, being one of the first places in Spain to offer package holidays as the popularity for holidaying abroad became affordable to all.

Mallorca is the biggest of the Balearic Islands boasting long warm summer days of 10 hours sunshine, tranquil pure blue waters perfect for water sports and snorkelling and being in the Mediterranean the water temperature for the peak season months is extremely enticing too, the coastline is a mixture of fine white sands, with coves to explore and secluded beaches which seem to be undiscovered, because of such great qualities Mallorca is not only a perfect holiday destination it has also become a prime location to buy property.

The main language of Mallorca is Catalan, but it has a slightly different dialect to the Catalan spoken further North. Spanish is also spoken on Mallorca, with the residents having a limited knowledge of both German and English mainly due to the tourist trade that Mallorca for many years has been host to.

The Balearic Islands like so many other destinations in and around Spain are seeing a real increase in the amount of foreigners wanting to take up residence. The Mallorca property market is no exception, real estate in Mallorca has become a big business but how do you go about finding the right estate agent for you?

Mallorca property ranges from apartments on the coast to luxury mansions in the more rural settings, villas, fincas, town houses and property developments. Offering such a wide range of property, scenery, and weather it is no wonder that so many people have chosen to make the move, two of the popular regions are Puerto Pollensa and Alcudia due to the beaches, people and locations.

To find the right accommodation whether for relocation, investment property, holiday home or a piece of paradise to retire to, estate agents are the best place to start, you can commence your search of property both for sale or to rent on the internet these days with direct contact via telephone or email with the agents.

Some estate agents will offer more services than just the property aspect, especially if you have no experience in buying abroad; it is often wise to find out whether anyone speaks English too. Finding the right representation such as fiscal advice to guide through the local property taxes, CGT, IHT with a Spanish qualified tax consultancy, they can even suggest an English speaking lawyer to take care of the legal process for you, not forgetting providing an after sales service to make sure that everything is perfect upon and after completion of sale.

You may have other ideas and wish to set up a business, most property agents also have business premises to buy or rent, some being freehold but the majority are leasehold. If you are wishing to relocate setting up business might well be part of you relocation plan?

For those who have a specific idea of what they want, the opportunities to build your own villa are endless; with a wide range of plots of land in various locations the possibilities are endless. In order to do this though there are still a number of legalities which have to be covered, this too can be handled by established agents. Nowadays Mallorca property agents can offer off plan villas or complete services to oversee building projects, often helping you to find an architect to draw your tailor made plans, helping you design a Mallorca property specifically to your requirements, again provide lawyers to take care of the legal jargon and then provide you with a complete project management package, which oversees the whole project from plans to completion of building.

It does help to shop around, finding out a little bit more about the individual property agents will give you an insight of the services they provide, whether there will be a communication problem due to language barriers or if they provide translation or English speaking representatives to help, also the diversity of property available is often a good sign too the more property on offer generally is a good indication that their services are trusted. If you can find a reputable Mallorca Property agent offering all of the above, you are another step closer to realising your dream.

Shaun Parker researches how easy it is to find a Mallorca Property Agent you can trust, how easy is it to purchase property or build your own villa, negotiating the Spanish legal process to achieve your goal.

Buying a house is quite a tough job. There are many things that can be purchased in a few moments. Batteries, toothbrushes, chicken, and even watches can be picked up off the shelf within a matter of minutes. However, when it comes to buying houses, you need to do a lot of research. After all, there is nothing remotely “use and throw” about an investment of this kind. This is a place that you will be living in for maybe even the rest of your lives. So you should make it a point to do as much research as possible when you are going about buying a house.

Now, the first thing to do is to determine the location of your home. Would you like to live in a busy and fast-paced city? Or would you prefer to put up in some relatively quiet suburban area? What are the things that should be nearby? Are you a shopping and movies buff who needs a mall and a theatre? Are you looking for a school for your child? Would you like a library close by? You have to think about your needs when it comes to finding a house. Then you start considering things like whether you want an airy apartment or a big bungalow or just a one bedroom flat.

Then you must get in touch with a house broker or a real estate agent to help you narrow down your search. A broker will have lots of terrific deals that you might not have found on your own. So it would be a good idea to consult someone who has adequate knowledge of house-buying if you are somewhat ignorant in that area. Once you have found some houses that suit your budget as well as your other needs, you will have to go about finding suitable mortgage plans.

If you would just do an Internet search you would find a whole lot of websites that have mortgage calculators. These mortgage calculators take into account questions like your current income, the loan amount you are seeking, and your current debts to decide what kind of a mortgage loan can be offered to you. Try out a few mortgage calculators from a few different websites and you should be aware of what to expect when you actually decide to go and apply for a loan. Never go to a loan provider unless you have already carried out some preliminary research. This will allow your loan provider to assist you in finding that ideal mortgage of yours.

Home buyers, use our mortgage calculator and get cheap mortgage loans as well as home refinance loans.

Prospective first-time buyers in London are struggling even more to get into the housing market, an industry expert has claimed.

According to Paula John, editor of Your Mortgage, consumers in the capital are having to wait an average of five years before they are able to save up enough cash to purchase their first home - a rise of some 11 months from a study conducted last year. Consequently, Ms John reported that due to the increased amount of time it takes to put money away to meet property deposits and secured loan costs, combined with recent interest rate rises by the Bank of England, “houses are even less affordable for first-time buyers so they are being kicked out of the market altogether”.

As a result those looking to buy a house across the country, but in particular London, are now being forced to “lower their sights” just so that they can get on to the property ladder. This has been said to lead to Britons being forced to accept that they are probably unable to afford the type of property they would like or in the area they would wish to live in. Consumers were also reported to be increasingly buying homes with friends, family members or partners in an attempt to afford increasing mortgage costs as they look to be “creative” on entering the housing sector.

The editor also reported that a number of parents could risk getting themselves into monetary difficulties in an attempt to help their children get their first home, as about half of prospective first-time buyers look to their families for financial aid. “Parents are giving up their savings and hard earned cash, even remortgaging and releasing equity from their own property in order to give it to their children to help them on to the property ladder” she commented.

Meanwhile, those thinking about opting for 100 and 110 per cent mortgages were advised to do so with “consideration”. Ms John claimed that although they can be helpful for some borrowers, overall she advised “they’re never ideal and they’re never charged at the very lowest rate on the market for obvious reasons. They can be useful if you absolutely have to get on the ladder now but you’ve got to pay the price for the convenience”.

Earlier today, figures released by the Land Registry indicated that despite property prices across the country having increasing over the course of June (0.4 per cent) this rate of growth was almost half of that recorded during the previous month (0.7 per cent). Overall, the average home was now reported to cost 181,039 pounds - a rise of 9.1 per cent from the same period in 2006. London was reported to have driven growth during the course of the month, as homes in the capital rose by 1.5 per cent to a typical value of 338,950 pounds.

During the last 12 months, the city was said to have seen an increase of 15.8 per cent. Meanwhile, the West Midlands witnessed the second highest price rises over June as they rose by 1.2 per cent. However, only half of the regions surveyed saw house costs rise with the remainder posting decreases - which were particularly driven by Wales (-1.1 per cent) and the East Midlands (-0.6 per cent).

Tom Dawson is the Editor in Chief for Essentially Home Loans where visitors can apply for cheap loans online. We also specialise in debt consolidation loans, and secured loans

An increasing number of graduates are unable to afford to take the first steps on the property ladder, new figures report.

In research carried out by Scottish Widows, some 56 per cent of those who have finished higher education are yet to buy their first property - an increase of three per cent from the same study carried out last year. Meanwhile, an estimated one in four people who graduated ten years ago are reported to not be on the housing ladder.

Statistics from the financial services provider revealed that increasing property prices were the main reason for graduates being squeezed out of the housing sector, with 70 per cent of non-homeowning graduates, an increase of six per cent from the 2006 study, citing this factor. According to the firm, the average home costs a typical graduate first-time buyer 122,045 pounds, with this figure increasing to 179,228 pounds for those living in London.

Richard Clark, head of product development and marketing for Scottish Widows, said: “This year’s report reveals that the situation really is getting worse for graduates. The main issue is that property prices and inflation are continuing to rise, but starting salaries have not moved in line with this. First-time buyers are struggling to save for that deposit and recent interest rate rises are acting as a further deterrent. Owning a home is likely to remain a pipe dream for many.”

Meanwhile, just under a fifth (19 per cent) of respondents claimed that if they were to buy a house then would be likely to be unable to make secured loan repayments. Some nine per cent of graduates were said to believe that money owed from their student loan is stopping them from getting on the property ladder, as one in eight claim other debts accrued on the likes of personal loans and credit cards are preventing them from buying their first home. Overall, graduates were said to be in debt of some 10,361 pounds upon leaving higher education. More than half (58 per cent) of consumers who have recently completed university believe that they do not currently earn enough money to allow them to enter the property market.

Mr Clark added that the company had witnessed a rise in popularity of 100 per cent mortgage products and those graduates looking for financial aid from their parents. Although the expert welcomed moves by the government to make property affordable for prospective first-time buyers he claimed “there is still much to be done to make the market more accessible”. His comments come after the financial services firm reported that 15 per cent of first-time buyers claimed that removing the need for a deposit would help them buy a home, with 13 per cent stating that purchasing a home would be easier if lenders consider their future earning potential rather than their current income.

Earlier this month, a study conducted by mform revealed that 2.08 million consumers aged under 35 are looking to take out a mortgage worth at least quadruple the amount of their annual pay. The research also showed that 828,000 are willing to opt for a secured loan at four times their salary. Marketing and business development director Francis Ghiloni claimed that as house prices continue to increase those aiming to get on the property ladder “will have to take on huge debt”.

Steve Smith writes for 1 Stop Finance Shop. A one stop shop for all your loan requirements, from payday loans, to secured personal homeowner loans. Visit our site today: http://news.1stopfinanceshopuk.biz

Many people want to know “When is the right time to buy real estate?” Over the constant flow of information related to home prices, interest rates and discussions of buying or renting, it can be a challenging decision. In fact, if you wait for the “right time” to buy real estate, you may still be waiting ten years from now. Despite what you may hear, you don’t need a crystal ball to make money in real estate and there is no ideal time to buy. With simple strategies, you can make solid profits in real estate, no matter how cold the market seems to be or what you may be hearing in the news.

Buy Wholesale
The point is that real estate purchases take place every day, even when markets for both residences and investments are seen as cooling off. Recently, in fact, home sales have continued to be solid even if prices in some markets have leveled off or declined. The same investing principles apply in both hot and cold markets - purchase at a low or “wholesale” price, and sell at a high or “retail” price.

There will always be motivated homeowners who need to sell their property for any variety of reasons, including relocation or a shift in investment strategy. During this time, they may be willing to let their house sell for well below current or actual market value. There are always houses that can be bought wholesale, and then either re-sold (”flipped”) or purchased as an investment.

If you decide you would like to buy a home to flip, you can purchase the property and sell it on the same day in some areas or use a realtor to help with the sale. The key to wholesaling is locating deeply discounted properties that are easy to rent or flip, and they are always there in some way in all markets. There will always be good homes available at the bottom price of the market!
Long-Term Strategy

It is inevitable the real estate market will slow down in all areas at some point. Real estate is a commodity, and there are natural business cycles in every commodity. When the real estate market does start to slow down, many investors are tempted to sell their properties for what they can and get out of the market. Short of panic, they may still believe that the market has hit a high that cannot be reached again. However, you can purchase and rent out that property and still make money through continued cash flow and even modest price appreciation.

Renting out an investment property will usually net you a positive cash flow, increase your equity with every mortgage payment, and even make tax-deductible improvements that increase the property value. When market prices begin to rise again, which they always seem to do, you have a property that has cost you little or nothing to maintain, and has increased in value along with your equity.

The real estate market will always have its highs and lows. Currently, although the market may seem to be slowing or modestly decreasing in many areas, it is really just a matter of time until the market becomes positive again. By creating a solid long-term investment strategy that includes real estate as a component, and by sticking with that plan, you will make current profits and be solidly positioned for gain when the market rises again.

Get more Real Estate Investment Tips and free advice from http://www.ezlandlordforms.com. We offer Rental and Lease Agreements for landlords. We are the only online document system for landlords.

Listen up. This is important and it is the most common situation I see beginning real estate investors get themselves in.

You go out and get pre-approved by your mortgage broker. They give you the thumbs up and tell you to go out and purchase your first investment property. You are excited that you have begun your wealth creation journey. And you should be, real estate is a proven vehicle to build wealth.

You then go and find a Real Estate Agent that actually knows something about investing in real estate (a huge challenge in itself), you spend weeks finding the perfect property and you finally make the purchase.

Then it happens…

Closing day approaches and your mortgage broker rings you up with something like this:

“Hey, I’ve got some updates. Apparently I can’t actually get that mortgage program that we spoke of a few weeks ago. Don’t worry, you will still be able to purchase the investment property but you’ll need to put down 15% instead of 10% and the interest rate on the mortgage is going to be 7.8% instead of 5.9%.”

Now you’ve got problems. You need to magically come up with more cash, your Return on Investment will change drastically and your monthly cash flow on the property will go from a positive to a negative.

Let the scrambling begin!

You call your agent, who will likely not have many options for you, you call another broker, who doesn’t have enough time before closing to save you and you then call your mom asking to borrow money to save this deal from falling apart. Not fun, not funny.

Here’s what you should know…

1. First off, always ask your friendly neighborhood mortgage broker how many investment properties they have actually closed on. You are looking for experience. Let some else work in a beginner. Not you, it is not worth your time or your money.

2. Second, ask the mortgage broker to send you the fine print. Ask for the details of the mortgage program. Check that the interest rate on the mortgage program doesn’t have any clauses about increasing the interest rate based on your down payment amount. I’ve seen brokers offer mortgage programs without fully understanding the program.

You should know that these mortgage programs are sold to the brokers just like anything else…with salespeople and marketing flyers. Some of the marketing material may highlight a certain interest rate. But the fine print may state that your credit score must be above 650 AND the down payment must be 15% to qualify, not 10% as you anticipated.

Now let me be clear, I don not think there is any malicious intent in these situations. There is fine print in every deal, whether it be a car purchase or a commercial lease. However, if your banker or mortgage broker hasn’t been through any investment mortgages they may be totally unaware of these critical points.

So take it upon yourself and ask them to email or fax you the details of the mortgage program.

3. Lastly, know your credit score. You can pull your credit score from Transunion or Equifax and it will not affect your score. When you pull your credit score yourself it’s called a soft pull. Your credit score plays an integral part in getting any mortgage and it is amazing how many people don’t know their own score. You may think you have perfect credit, but, and I’ve seen this, you forgot to pay a $20 VISA card bill 6 months ago and your score drops from 660 to 610 and you now no longer qualify.

Real Estate Investing is a real business. Treat it as such. Know you broker’s background, know the mortgage program, know your credit score.

It will save last minute panic attacks two days before closing. You can focus on making money instead of spending more of your own.

Now go forth and take some action!!

Tom Karadza is an expert in residential real estate investing. Find step by step real estate investing guides at http://www.TheRealEstateRenegades.com .