How to Invest in Superior Condominiums

Condo or condominium is a housing option that looks like an apartment complex. Condo ownership lets the owner to own the condo only not the land. Condo owners have to pay monthly fee for maintaining common areas. 

Generally the association of property owners manages condominiums. Owners of condominium can do anything inside the their unit but not the outside. You’ve to clear all related points that what you can do or not inside the condominium at the time of signing the contract. You should check that whether it satisfies your requirements or not. 

Condominium buying is just like purchasing single-family homes. Condominium offers a joint ownership of real estate and partners can use common recreational areas. Condo buying is the cheaper option as compared to real estate market. It offers great living opportunity in United States. It is the great option for the people who travel a lot. Several owners of real property offer condos with kitchens and private bedroom that enables residents of condominium to cook their food. They can save money by cooking their meal own. 

Condo buying offers ownership without maintenance harassment, repairs and security concerns. Condos are usually luxurious and cheap housing options and you can spend your holidays at beautiful locations. Before any type of purchase check parking spaces, bathrooms, fireplace, condos’ area, amenities such as pool, health club etc, area costs, and security arrangement.

Condos’ buying is an important financial investment. Before purchasing unique condominium answer yourself for some general questions like:

Which area of the city is best suitable to your lifestyle?

What type of condo do you want? 

How much you can pay for it?

How do you make purchase of condominium?

You should research for the builders’ reputation on Internet or personally before any type of agreement. Read purchase and sale agreement carefully and check all terms and conditions that will apply on the transaction. Be sure about all details of condo homeowner association that includes costs of monthly maintenance fee. The decision of buying condo should be based on social, legal and financial understanding. You should check whether the property is right for you and your family for a long period. Important documents such as the declaration, operating budget, management agreement and regulatory agreement should be reviewed at the time of buying a condominium. 

Condo buying is not the best option for all. People who don’t want to share certain areas, like pool etc, with other condos owner should go for single home ownership instead of condominium. Sometimes total price of condo is lower than single-unit home. Condos’ residents should be aware of condominium settings. They can share their problems in monthly meeting with the association. It is compulsory to attend meetings and discussions. You should be active in community events while living in condominium. 

You can talk to several professionals online to get all useful information about a particular area. They will provide significant information to make an easy condo buying. You should make your condos buying with complete understanding and awareness.

·         Sarah Miller offers real estate services in Bryan-College Station Real Estate. She is one of the RE/MAX Bryan-College Station realtors that has a long list of the finest real properties bryan tx, that any intending settler or buyer can choose from.

 

Creative Financing - Ten Ways

Do all the creative financing techniques you hear about really work? Yes, actually. They probably have all worked somewhere for someone at least once. The point isn't if they will all work for you. The point is to know what is possible, so you can find your own creative ways to invest in real estate. Here are ten methods to get you thinking.

 1. Hard money lenders. You can ask around or find these online. They specialize in short-term loans at high interest. You typically use this type of financing for a "fix and flip." You can often get the money fast, and if you make $30,000 on a project, who cares if you paid $10,000 interest in six months.

 2. No-doc and low-doc loans. No (or low) documentation of your income or credit required. Again, you can find banks that do these online now. The catch is that you will only be able to borrow up to 80% of the purchase price or property value. If you have 10% in cash, you might be able to borrow the other 10% from a friend or the seller.

 3. Seller-carried second mortgages. Sometimes a bank will loan you 90%, and allow the seller to take back a second mortgage from you for 5%, leaving you needing only 5% for a downpayment.

 4. Land contract. Called "contract for sale" or other names as well, this just means the seller lets you make payments, and delivers the title upon payment in full. I sold a rental this way for $1,000 down, because I wanted the 9% interest, and the higher price I got this way.

 5. Credit cards. If a seller will take $10,000 down on a fixer-upper that you expect to make $20,000 on, why not use credit cards? This is a true 0-down deal for you, and if you turn the project in six months, you will have paid $900 in interest on an 18% credit card. Don't let $900 get in the way of making $20,000.

 6. Retirement accounts. The laws get pretty complex in this area, but you can check with a tax attorney to see how you might borrow from your own retirement account to finance real estate investments.

 7. Friends and family. Keep it all business, if you use this source, but loaning you money at 7% isn't a gift if their money is getting 2% in the bank.

 8. Note buyers. The seller needs cash. He raises the price, and sells to you for $100,000 with no money down, taking back two mortgages from you for $90,000 and $10,000. He arranged (or you did) for a note buyer to pay him $80,000 cash for the first mortgage at closing, getting him the cash he wanted. You pay two payments now, one to each note holder.

 9. Get a loan on other property. Interestingly, if you take out a home equity loan for a vacation, and then forget to use it for that, you can use it for the downpayment on an investment  property, without violating the rules of the bank that gives you the primary mortgage. In other words, you got in with no cash of your own.

 10. Partnerships. For bigger projects, you could arrange for five investors to each put money into a partnership, with your share being the management responsibility instead of cash.

·         Sarah Miller offers real estate services in Bryan-College Station Real Estate. She is one of the RE/MAX Bryan-College Station realtors that has a long list of the finest real properties bryan tx, that any intending settler or buyer can choose from.

Coinciding Settlements Clauses - Funding Issues

People who are selling their home in order to buy another frequently put a "coinciding settlements" clause into their contract offer on the new home. The purpose of this is usually twofold. In this article, we discuss the first purpose which is to use funds from the old home to pay for the new one. 

How Coinciding Settlements Work

A coinciding settlement clause usually says something along the lines of "settlement under this contract is contingent upon the settlement of the contract for the sale of the Purchaser's property located at 1234 Spring Valley Drive..." It typically goes on to state the maximum number of days this settlement can be delayed by delays on the other settlement. It also usually says what will happen if the other contract becomes void. (Usually "this" contracts becomes void, too, but that doesn't have to be the case if there's another source of funds.)

The settlements don't literally happen at the same time as the name implies. They can be back-to-back in the same office. They can be a day (or even days) apart in offices in different states. Very often it's necessary for the settlement agent for the first settlement to wire transfer funds directly to the banking account of the settlement agent for the second settlement. This is usually a smooth, seamless procedure. 

A Word to the Wise Seller

Coinciding settlements usually work well for the purpose of providing funds as outlined above. The one problem that crops up from time to time occurs when the first sale falls apart for some reason. The most frequent reason the first sale falls apart (when it does) is that the buyer is unable to get his loan. Because of this, some sellers insist that coinciding settlement clauses include language giving them permission to check with the lender for the first buyer. Making sure the first buyer is qualified for the necessary loan is good business. Don't feel awkward about it. 

Coinciding settlement is a common fact in the current real estate market. Use the above technique to avoid problems with your real estate transactions.

Sarah Miller offers real estate services in Bryan-College Station Real Estate. She is one of the RE/MAX Bryan-College Station realtors that has a long list of the finest real properties bryan tx, that any intending settler or buyer can choose from.

Closing Costs When Purchasing A Home

Buying a home is a financial strain if you are making a sizeable down payment. This can lead to problems if you forget the hard, cold cash you will need for closing.

Closing Costs When Purchasing A Home

Everybody looking to purchase a home no doubt wonders what the average closing costs will be. It is only natural to wonder, especially considering how expensive the closing costs can truly be if you are not careful. In truth, the costs aren’t much given the amount of money the home typically sells for, but they can cause problems because they usually must be paid now and in cash. Essentially, they add to the down payment amount and can cause cash flow problems for buyers.

As you might imagine, closing are not easy to quote. Closings in one state involve different things and costs compared to another. Closing costs related to things such as points and property taxes are dependent on the particular deal and geographic location. Some states, for instance, do not collect property taxes, which means no deposit against them must be collected at closing. All and all, you should take the following figures with a grain of salt, but at least you will have a guideline.

To protect their investment in you, most lenders roll the majority of closing costs into the payment plan for the loan. For instance, the lender will require you to pay a deposit in to one of their accounts to cover future property taxes and such. If you are lucky, some creative lenders will actually roll these costs into the in the loan given to you.
As of 2003, meaning the numbers have risen quite a bit over the past couple years, the average total closing costs for a $180,000 mortgage amounted to between $2,000 and $10,000. This figure is an admittedly vague calculation of costs ranging from appraisals to fees and taxes. Do not go into a real estate transaction assuming these figures will apply to your specific situation. Get a very clear written statement of all costs, so you know exactly what is coming and the amount of cash you are going to need on hand to cover them.
If you are buying a home, there is one way to attack closing costs. You can aim for a no point, no fee home loan. Assuming you can find a lender, many of the expenses attributable to a buyer are going to disappear. Of course, you have to get the loan!
The fact that you are wondering about the closing costs when purchasing a home is a good sign. It means you are thinking through the process properly. That being said, don’t rely on anything you read on the web, including this page. Get the exact terms from your lender and an escrow company. If you have less than stellar credit, using a mortgage broker is an excellent option as they now how to beat down the costs in your favor and can also give you a solid estimate based on both their experience and the lender being used.

·         Sarah Miller offers real estate services in Bryan-College Station Real Estate. She is one of the RE/MAX Bryan-College Station realtors that has a long list of the finest real properties bryan tx, that any intending settler or buyer can choose from.

Real Estate Investing 101

Just because the residential real estate market has crashed is no reason to think that you cannot still make money in a buyers market.  The country is heading into a recession and has been for over a year.  We have not yet reached rock bottom.  However, you can make money in real estate during a recession.
Real estate is one investment that is needed by everyone.  Everyone needs a place to live.  If you cannot afford to purchase a home of your own, you have to rent.  One way to make money in a down real estate economy is to buy a home on the verge of foreclosure where the residents are still living in the home.
By purchasing a home that is on the verge of foreclosure, you can allow the former owners to stay in the house and continue to make payments to you as their landlord.  You will be getting all of the tax benefits as well as be the ultimate owner of the home.  You can refinance the mortgage so that the interest rates are lower and the mortgage rate is much less than what the people were originally paying.  You can help them out of their bind by lowering their monthly rent payments and allowing them to stay in their home for a  period of time until they can afford to either buy the home back from you or move on.
If they cannot afford to continue to live in the home any longer, you can rent the home out to other people.  The home will be a long term investment for you as well as a tax write off.  If you are planning on investing in real estate in this manner, make sure that the home is located in a solid area where the property values are increasing.  In a few years, the market will rebound making your home worth a lot more than when you purchased it.
In many cases, a person who is on the verge of foreclosure has no idea what they can do to help themselves.  If they have children who are attending a nearby school district, they do not want to uproot them.  You can help them and make a wise investment if you purchase the home before it goes into foreclosure.  This is known as the short sale and you will be merely assuming the payments as well as the incurring the debt from the bank.  Since banks rarely lend out more than 80 percent of the value of a property, you are already getting, at the very least, a 20 percent discount off of the home.  The longer the people have lived in the home, the less they likely owe for the mortgage.  You will assume the mortgage payments, refinance the property at a lower interest rate and then rent the home to them.
This will make the people who are on the verge of foreclosure happy to be able to stay in their homes as well as have the potential to make you some money.  If they have gone into foreclosure because of some unforeseen circumstance that will be alleviated, such as someone losing their job, you can make them an offer to rent to buy, which means that a portion of their rent can be used as a down payment if they want to buy their home back when things get better.  Either way, you make a solid investment and have renters who will most likely take care of the home.   

·         Sarah Miller offers real estate services in Bryan-College Station Real Estate. She is one of the RE/MAX Bryan-College Station realtors that has a long list of the finest real properties bryan tx, that any intending settler or buyer can choose from.

Making An Offer On Real Estate In A Recession

What should you look for when you are making an offer on a piece of real estate during a recession?  You naturally want to get the best deal possible, so you should be careful about doing your homework before you are ready to make an offer.  Here are some tips that can help you make a good offer during a real estate recession:

Discount anything the real estate agent tells you about the price.

Real estate agents are paid on commission.  It is not in their best interest to see you “get a deal” on a piece of property.  It is in your best interest, though.  Do your homework and take a look at the amount that other homes in the area have sold for, not for the amount that they are listed, but for how much they sold.  This is all public record.  Take a trip down to the county recorders office and you will find the information on any homes that have been sold in your area. 

Offer At Least 20 Percent Less Than The Listed Price

The rule of thumb used to be to offer 10 percent less than the listed price.  This was considered a low offer.  With the economy today, the rule of thumb is 20 percent less.  There are so many homes on the market today that you really have quite a choice when it comes to where you want to buy and how much you want to spend. 

Take A Look At How Long The Home Has Been On The Market

Be sure to look at how long the home has been listed.  Homes that are fresh on the market should be looked at as they are sometimes listed a lot lower than they should be by either an inexperienced or greedy real estate agent.  If the home has been on the market for less than a month, chances are that the owner has delusions of grandeur and refuses to believe that there is a recession.  You can offer less, but chances are that they are going to want to get other offers.

If the home has been on the market for a year or more, there is either something really wrong with the house or they are not budging on their price.  This is a good one to skip.  There have been houses that have remained on the market for several years, vacant. 

Be Pre Approved And Have Nothing To Sell

Although a seller will probably take any type of contract in this market, you are a lot more attractive as a buyer if you have nothing to sell and have been pre approved for the mortgage.  A pre approval letter is different than being pre qualified.  Someone who has been pre qualified has not gone through the gamut of giving in all the paperwork needed for the loan.  A pre approval letter means that you have gone through the entire mortgage approval process and are ready to close.

Follow these tips before you make any offer on real estate in the market today.  You can invest in real estate during a recession - you just have to understand how to go about making the right offer. 

·         Sarah Miller offers real estate services in Bryan-College Station Real Estate. She is one of the RE/MAX Bryan-College Station realtors that has a long list of the finest real properties bryan tx, that any intending settler or buyer can choose from.

 

Making Money In Real Estate - New Construction

If you think that because the residential real estate economy has gone bust that there is no way to make money in this market right now, think again.  There are thousands of upscale neighborhoods across the United States in which new construction of homes was halted because of  the collapse of the real estate market.  Most of the homes that were under construction had been purchased by real estate investors who hoped to flip the home upon completion to a new buyer and make a sizable profit.
When it became apparent that the majority of people who were commissioning new construction homes to be built were investors and there were not a lot of buyers, the entire market crashed.  Investors lost money and many developers went out of business.  They had a lot more homes in their new subdivision for sale than there were buyers.  On top of that, they owed banks money for financing the subdivision.  Pretty soon, banks took over these areas, which are located throughout the United States and particularly in Florida, California and Nevada.  These areas were booming in the 1990s and then crashed. 
There are many homes in these upscale neighborhoods that are in the process of construction.  When the builder went bankrupt, the construction was halted.  Banks took over but have no interest in getting these properties constructed.  They are simply looking to get their money back.
If you know about new construction or are in the trades, you can buy one of these partially constructed homes for a fraction of their cost and finish the construction yourself.  You have to be careful, though, that you understand what you are getting into.
You will have to know about building codes and make sure that the home is completed in accordance with the codes.  In addition, you should also be aware that some municipalities have ordinances that require that construction be completed within a specified amount of time.  If the house has not met that specification, there may be fines associated with the property.  A title search will allow you to discover if there are any fines that have been levied against the property from the municipality for non completion of construction. 
In addition to doing as much of the work on your own, you can also find labor relatively inexpensively throughout the United States.  The trades were hit hard during this recession and there are many people who are experienced in all aspects of home building that are out of work.  Many small trade companies have even gone out of business.  You can find cheap labor to help you finish the construction of your house.
Buying new construction is usually a way to make money in real estate during any type of market.  But even in this recession, you can buy partially constructed homes, finish them and then get ready to sell.  Although you may make a small profit selling the home after construction is completed, you can make an even larger profit if you look for the long term investment and wait until the market turns around .
 Sarah Miller offers real estate services in Bryan-College Station Real Estate. She is one of the RE/MAX Bryan-College Station realtors that has a long list of the finest real properties bryan tx, that any intending settler or buyer can choose from.