Real estate 2009

Archive for January, 2012

Smart Shopping For A Golf Community

When looking at real estate in a golf community it’s easy to get distracted by the stunning natural landscapes the immaculate fairways the luxury clubhouses and the opulent lifestyle that can accompany golf course living. Wake up! This also represents a serious investment and possible lifestyle change and you owe it to yourself to do your due diligence and not rush into an emotional buy.

Before you start touring those gorgeous model homes sit down and go through this checklist to help determine exactly what you want from your new venture.

Where do you see yourself living? Are you enticed by oceanfront property mountains which may double as a winter ski location or maybe a dry desert climate? Wherever you choose it should be someplace you sincerely want to be not someplace that later you wish you’d never chosen.

Is the timing right for your new golf course lifestyle? If you’re not at the stage of your life where you can appreciate all the amenities your new home has to offer this may not be the right timing for such a move. If this is a vacation home ensure it offers what you want as well as a convenient location that you’ll use often.

The club may have plenty of great features but what’s located outside your community? If you have to drive an hour to get to a grocery store go to a movie or visit your doctor this may not be the best choice. Are there other activities or places that interest you close by? If you like to golf and are an avid fisherman you might want to find a place with a lake nearby. It’s all about choices that golf course may start to feel restricting if that is all you have.

Is it an easy location to access? If your dream community is located on an island where access is by boat or plane you need to consider whether you are ready to deal with the inconvenience. Mind you some may feel the remote location is just what they’re looking for.

Research the developer and inspect their track record. Are they famous for delayed over budget projects or do they deliver what they promise and on time? Are they easy to contact or do you find yourself forever leaving messages or dealing with a full voice mail box? Talk to other residents and some of the staff to get a feel for the quality of management at the community.

What is the property going to be like 10 years from now? If the neighborhood appeals to you because it’s fairly private and moderately populated find out how many future builds they are approved for. You may be investing in Phase 1 with 10 more phases to go. That scenic view of the lake may turn into someone’s backyard wading pool in a few years.

Understand the club membership plan. What may seem like a great deal today may simply be an introductory special. What is included with the fees and how much can you expect it to increase each year? Consider the members as well. If this is largely a senior occupied community and you have young children is there enough available to interest them. Some facilities have generational memberships that include all the immediate family members. If you’re wife and kids plan on using the facilities this makes sense.

Test out the golf course. If the course looks pretty on the outside but you get bored after playing it for a month you’ve got a problem. It should be well kept well run and provide enough of a challenge to keep you coming back. After all you’re in this for the long haul.

About the writer:  Joshua Sloan is your experienced Realtor for San Diego California real estate. Visit his website at SanDiegoRealEstateBuzz.com to view the San Diego County real estate listings.

Seller Financing – Making A Comeback

If you are selling your home and your existing mortgage is already paid off and you don’t require the proceeds of the sale all at once then you may consider financing the sale yourself.

Unlike when investing in a fluctuating market holding the loan on a mortgage assures you of a predetermined interest rate. Now that banks have started tightening their lending criteria some prospective homeowners are finding it more difficult to obtaining mortgages and seller financing solves the problem. In addition to the investment benefit homeowners find that offering to take back the mortgage gives them a sellers advantage in this tight buyers market.

Generally the seller and the buyer come up with a mutually agreeable arrangement that outlines the payment deposit and payment schedule without the benefit of bank involvement. Instead of financing the entire mortgage amount the seller may consider taking a loan on a portion of it. Often times people want to buy but the banks won’t give them the amount they require. These types of loans are often short term and at a fairly high rate of interest.

It’s common for banks to request at least 20 percent down or the borrower will have to agree to pay for private mortgage insurance. This adds an extra charge of up to half a percentage point to the mortgage. Generally the individual seller requires only a minimum 10 percent down payment but it is to the buyers advantage to put down as much as possible.

Interest rates in a seller financing arrangement are generally a few points above market rates because the lender is taking on the risk especially if a buyer is pursuing this avenue of financing because of rejection from a bank or other lender. During the bargaining process sellers who normally would have to settle for a lower than desired price for their home can instead offer a slightly lower interest rate in return for the original asking price.

There are two common types of financing used with most vendor loans a purchase money mortgage or an installment contract. With a purchase money mortgage the seller pretty much plays the role of the bank. They receive a cash down payment from the buyer then proceed to take back the mortgage on the remainder of the balance. The buyer gets a deed and title to the property and commits to making monthly payments on interest and principal.

Installment contracts are generally held for shorter terms and the deed and title are not handed over until the amount is paid in full. The buyer lives in the home paying off the interest in regular installments over the length of the contract with the balance due when the loan matures. In most cases owner held mortgages have shorter terms of five to seven years and finish with a balloon payment.

Since there are no banks involved it is critical that the buyer does his research with regard to uncovering any tax liens or claims that could affect property transfer. Also important are a current property appraisal credit report and background check for both parties. If the buyer defaults then the owner must go through the process of foreclosure or eviction before they eventually retain original title again.

When a buyer is applying for an owner held mortgage they should provide the same financial documentation that they would if applying for a loan at a bank. The seller will need a good real estate attorney realtor and possibly an accountant overseeing the transaction.

About the writer:  Visit LeslieEskildsen.com for all your Orange County real estate needs. Compare the market in surrounding areas including real estate in Rancho Santa Margarita.

Information On How To Invest In Real Estate

One of the fist things for starting out and investing in homes you should take into context is you should always seek out the homes that need TLC. By looking for these homes you will see that they are less expensive even though they will require some reconditions and work. When starting out you should look for homes that need work such as new paint new carpet roofs and so on.

If you are good with your hands and feel comfortable working on the homes your self then this would be advised as you will save yourself a lot of money. However if you feel that you need to appoint someone you should always be certain that the person or company that you appoint is capable to do the maintenance/construction and the work. If you are not able to do any of the repairs you will need to do your research and hire a subcontracture this is where the research will come into play you must look around and get price estimates upfront to get the best possible price.

If the residence you are thinking to acquire and flip has any type of structural troubles it would be highly advised that you seek a professional quote from a contractor beforehand. If you decide to stay in the business you will learn a lot more over time although you should always hire a contractor when you first start out. Once you get all of the estimates together you can make that final verdict on how much of a bid you want to put down on the home.

Once you are going and have developed a team and have bought fixed and sold a few homes this will make you much much more comfortable in buying more homes that require more and more repairs. All it requires is time and practice and soon enough you will be buying homes that the typical investor flipper would never consider buying. This can prove to be a huge upside when you are going through homes to buy fix and resell you will have much less competition to be concerned about. This will also result in you getting a lower price to start with being the homes need so much work.

After you have learned you are capable to do repairs on homes including structural troubles you will have an enormous advantage in the whole real estate market. You will be able to purchase practically any residence including those that other investors have chosen to over look. When doing this it can be very profitable for you in the long run particularly if the house is in a great and well desired neighborhood. After you have finished the repairs then you can resell the home for a much higher price then what was originally obtained.

As soon as you start seeking out homes that you can repair and resale you should always take your time and buy the correct homes. When you just start out you will not have the time energy money patience experience or support to buy the much larger homes at first which also means you will not have any room for mishaps and problems. Once you have bought and flipped a few less significant homes youll sooner or later be able to work your way up to the much larger nicer homes which is were the much larger money and more revenue to come.

Whenever you just start out always remember that you will need to take things slow and never to rush. You can not anticipate earnings to come overnight in a heart beat as it will take you some time before things start to come into play. After you have been at it a few years and have acquired a few homes under you then you will be ready to take on anything.

About the writer:  Irfan Faruki runs a property investment company specializing in Fast cash property sale. They have cash buyers ready to buy your house within days and will make you an offer for your property in 48 hours. They also provide sell and rent back service