Cards Cut

Getting a survey before you close on any real estate is very important.

Some people actually buy real estate without having a survey done. It is not a requirement from the financial institute,
so does that mean you don’t need one?

By getting a survey you will not only get a blueprint of your property you will get your property lines marked out for you.
Most importantly, you will find out if there are any infringements on your property like a neighbors fence, a neighbors tree, a neighbors driveway, etc.

A survey can tell you many things.

It will disclose any easements you might have on your property.
Easements can be a fire lane or an access road for the local Power Company. These easements cannot be blocked, built on in anyway to prevent the lanes from being accessed. You could have a city or county easement on your road front property anywhere from two to ten feet into your yard you might not know of. This gives the city or county use of this property for power lines, phone line and even city water drainage. Although you might have to mow this lawn the city has the rights to its use.

A survey will show you if your property has a right of way
for the property behind your property. A right of way is incorporated onto your property and must be available to the property owner behind you to get to and from their property.

If the survey conveys a property infringement you can delay the
purchase until the infringement is moved or back out of the deal
if necessary. Easements will not be removed.

A survey can and will give you peace of mind and knowledge about
your property preventing any unexpected surprises later.
Knowledge saves you money and anxiety.

You decide if you should buy real estate without one!

Shirley Turetsky is the owner/webmaster for http://www.TodaysAds.net
Central Florida’s for sale by owner listings. Find her Do It Yourself FSBO Tips for buyers and sellers to guide you towards successful real estate transactions! More articles about real estate can be found at http://www.todaysads.net

For real estate investors it has become critically important to differentiate between being an “investor” and a “dealer”, especially after the Clinton Tax Act. A commercial real estate developer who buys large tracts of land, subdivides them and sells individual lots would be considered a dealer in most cases.

If you are marked as a real estate dealer for tax purposes, you will be taxed (up to 39.6%) on the full gain on a piece of property up front when the property is sold. You also lose the tax advantages of the installment sale when you sell real estate.

As an investor, you could be taxed as little as 28% under the capital gain tax laws for the same transaction. Until recently the tax difference between being a dealer (31%) and an investor (28%) was minimal. The Clinton Tax Act changed all of that by increasing the possible spread to 11.6%.

An 11.6% additional tax on a $250,000 real estate transaction equates to $29,000 of extra tax on the same transaction, all because you’re considered a dealer. For the average real estate investor, the dilemma is how to avoid being marked as a real estate dealer by the IRS.

Real estate investors do (and should do) everything possible to avoid being tagged with dealer status. There are many schools of thought on what warrants a dealer in the eyes of the IRS and what type of deals triggers the IRS to call you a dealer. Unfortunately, there is no singe answer to the question of how to avoid dealer status.

If you routinely develop, subdivide, market and sell large tracks of land, you will likely be tagged as a dealer. The real debate lies with real estate investors who routinely flip houses. How many deals per year are too many to be considered an investor by the IRS?

If you’re flipping (buying and selling in 12 months or less) 1 to 5 houses per year you probably have little to worry about if you keep a low profile. Especially if you keep a few houses here and there as rentals so you can show rental income on your tax returns.

Once your real estate investing business progresses to the point where you’re flipping 20+ houses per year you’re in danger of being tagged with dealer status. It’s a good idea to keep a few properties every year as rentals or lease/options to show passive real estate income on your taxes. If the IRS sees huge capital gains from multiple deals with no passive rental income you will raise your visibility and increase the danger of acquiring dealer status.

If you have one business that flips a large quantity of houses or develops tracts of land, you may want to shelter it in another entity from your passive investment business. Being tagged as a real estate dealer is never beneficial and you want to do whatever’s possible to maintain your real estate investor status.

Layne Parker has been investing in residential and commercial real estate since the age of 17. He now teaches others how to do the same. Click Here for a FREE CD and Special Report on how to start investing in real estate with no cash, credit or previous experience.

Property Index is an online platform that gives buyers access to thousands of properties www.propertyindex.com. Property in Spain is currently booming so browse the range on offer at Property Index.

Despite the fact that the Property Index is still a new kid on the block concern, starting their business only in March of 2007, they have fast become experts. They are actually a fairly hassle free concern entirely dedicated to catering to every customer who is attempting to let, sell, rent, etc. land across the world. Their affirmation is to aid you determine smack what you have need of quick plus, of course, sans pain. Realty is easily available anywhere in the world nowadays, certainly the most called for area being properties you can purchase in Spain. It’s no effort to tick off the great property available for sale in Spain, the explanation for investigating real estate here is a combination of the houses and apartments available for sale and the possibility of being able to live amongst this vibrant, passionate and dynamic population.

It’s one of the truly fashionable regions of the world nowadays, and in view of the beauty and the agreeable weather that surrounds you all year long, how can you say no! Realty in Spain is very rich in history and culture, this region has always been home to several indigenous civilizations. Just 25-30 years back there was merely a dribble of Britons looking for property in Spain. Ask just about anyone who has chosen to relocate to Spain and they’ll tell you the same thing. Plenty of people would tag it a fairly insignificant trend and others tag it a that’s more or less an infatuation… People that will transfer over here may range from young families in search of an exciting challenge in life to seniors who want to rest.

Note, however, that you may have to deal with troubles when looking to buy property overseas - there are normally hundreds of steps be it when strategising, surveying or finalizing the deal. Even if but a single step is missed this will initiate far-reaching troubles as well as, more important, loss of money. Obviously and expectably with this trendy location, property might well be pretty high-priced in this place which is, of course, plainly on account of the increasing market demand. Despite this property buyers are definitely spoilt in terms of choice in such a region boasting such a splendid setting. It’s definitely got the whole lot any of us might relish and lots more.

No business can go a long way without marketing, and the mortgage industry has long understood this fact. Mortgage companies actively market themselves via different channels to boost their businesses. Their marketing could be through personal methods such as seminars, presentations, and demonstrations, or through external agencies like call centers and lead generating websites. Mortgage companies that do not have the means to spend more money on marketing employ simple tactics such as flyers, press advertisements, email contacts and also word-of-mouth publicity.

The first step in mortgage marketing is to understand the market thoroughly. Mortgage companies sometimes conduct random surveys to understand the type of population they cater to. The services of an external agency could be enlisted. Another preliminary step is to have an insightful study into the company’s own strengths and weaknesses. Mortgage companies try to highlight their positive points, and at the same time improve on their weaknesses.

Mortgage companies market themselves through a particular feature that becomes identified with their brand. They could either advertise early mortgage approvals, loan processing within a short time, low interest rates, low insurance rates or bad credit mortgages. Sometimes they market their specialty in particular types of mortgages such as real estate, vehicles or home improvement. While marketing, mortgage companies describe their expertise in different types of mortgages such as governmental, Fannie Mae, Freddie Mac, etc.

Mortgage marketing is done on an extensive scale through telemarketing. Call centers provide mortgage leads to mortgage companies, which are then followed by them. Another channel is websites, which generate leads online and forward them to mortgage companies. Mortgage companies may spend thousands of dollars to call centers and websites to provide them with substantial leads.

Sending direct brochures to real estate agents is another approach at mortgage marketing. Real estate agents have the potential to market mortgages to their clients and thus generate business for the company. Mortgage companies may give some commission to real estate agents for the business they create. Certain mortgage companies erect kiosks at busy places which provide information to home buyers. These kiosks are targeted to first-time mortgage seekers.

Today, mortgage companies face tough competition with each other. Through serious marketing techniques, mortgage companies are attempting to keep their businesses going.

Owning a house is part of the American Dream. Depending on where you live in the US - home ownership can be around 70%. That means that 70% of people own their own home. That is very high compared to other countries. Owning a home is usually a nice piece of independence and also part of building a nest egg for retirement. Home ownership is considered an investment. But then it is surprising how many home owners treat their own home as if it would be something they don’t own.

Imagine the case of a lady in Highlands Ranch, Colorado. She bought a ranch-style home in late 2004 for $265,000.00 - mainly financed through a mortgage. She owes about 95% of the house value to a mortgage company. Highlands Ranch, Colorado is a covenant controlled neighborhood. Strict rules are in place of how to maintain a certain level of landscaping and to keep the property in shape (+ many more things). The covenant rules give a development a more standard appearance, and control some of the activities that take place within its boundaries. When enforced, covenants protect property values. When buying a house in Highlands Ranch the new owner agrees to obey the covenant rules by contract.

The lady from our example above decided to let maintenance of her landscaping slip. The grass was growing out of control. Then summer came along and as she did not have an automated sprinkler system for her yard no watering was done at all. This took care of the fast growing grass in a certain way. The grass started dying in the dry Colorado summer. The outside appearance of the former $265,000 home took a toll. Currently a real estate agent estimates the value of this house in question at $250,000.

The lady from our example took her home and did not treat it as an investment. If she would have to sell her home now she will have difficulties to receive her invested money back. If she would continue to treat her home not as an investment she will eventually turn the investment into a liability and risk her credit history. Especially as her home is in a covenant controlled area she faces extra cost associated with her house. The covenant community association can even put a lien on her home and enforce the covenant rules by sending in a landscaping company to fix the problem - at the owners expense.

In our example the Highlands Ranch Community Association has started the initial process of getting the property back on track. A dated notification has been send to the home owner to bring the property back into compliance with the rules.

Overall - if investing money and letting interest in maintaining the investment slip, means the person involved is throwing money out of the window. If you have enough cash this is not a problem but who has enough cash to do this? Buying a house means to take on the burden to maintain it. Failing to do basic maintenance means to lower the value of the property.

About The Author

Christoph Puetz is a successful Entrepreneur and international book author.

Websites operated by Christoph Puetz are Web Hosting Guide and Highlands Ranch Information and Reminder Service.

This article can be published by anyone as long as the resource box (About the Author) is posted on the website including the links. These links must be clickable.

Every so often, real estate transactions can go bad. This often results in one party demanding the other specifically perform pursuant to the real estate contract.

Specific Performance Demands In Real Estate Transactions

Once a seller and buyer agree on a price for a property, a real estate contract is signed. The contract contains provisions each must comply with, provisions that are legally binding. If problems arise during escrow, particularly if things turn nasty, one party may look to legal remedies to force the other party to do something.

Specific performance is a legal demand that a party perform some act. Although the theory can be applied to many situations, it is often seen in real estate transactions. This is because courts have determined that property is unique, and specific performance is often more valuable than monetary damages.

In the case of real estate, specific performance demands often involve the conveyance of title. Having met the conditions of the contract, the buyer demands the seller convey title to them. Why would sellers not do this automatically? Situations can include seller remorse, basic flakiness or the realization the seller accepted far too low an offer compared to what the market would produce.

Specific performance demands are a two sided situation. Courts often are reluctant to grant them because human nature is such that the defendant will often poison a situation by damaging the property or screwing up title. This does not mean the seller is off the hook.

While courts are hesitant to grant specific performance demands, they are not hesitant to enforce real estate contracts. Depending upon the laws in your state, the court may grant something called a lis pendens. The lis pendens represents the equivalent of the monetary damages suffered by the buyer. More importantly, it is recorded against the deed of the seller’s property. This effectively forces the seller to pay the buyer if the seller ever hopes to sell the property. When a title insurance company reviews title for any subsequent sale, it will notify the new purchaser of the lis pendens and refuse to issue title insurance. With no title insurance, the seller is going to have an extremely hard time moving the property. In fact, it will be nearly impossible as it is difficult to imagine any buyer that would want to get involved in the dispute.

While there can be sniping in real estate transactions, most go fairly smoothly. When they fall apart, specific performance and lis pendens can become dominant issues.

Raynor James is with the FSBO site - FSBOAmerica.org - homes for sale by owner.

Mortgages can have many terms that are determined based on the clients personal financial situation. But should you pay points above and beyond the interest rate or not?

Points are a single payment that are paid on the percentage of the loan amount. For example, let’s say you take out a mortgage of a total of $200,000 and you have to pay 3 points. You must pay a total of $6,000 in points to a lender. The lender is the person who supplies the money so you can buy the house in consideration. Your total interest rate may be lower, however, for paying these one time, up front fees.

You may want to consider taking a slightly higher interest rate that will end up less than these one time fees. Often, points are considered extra bonuses for the broker. Points are usually considered extra income on a deal. You can get a lower interest rate by paying these one time fees, however, it may not be the best option.

You need to accept the terms that best fit your situation. Try to get the lower interest rate without the points. Mention your positive attributes as a borrower and see if they won’t forget the points. Usually, if you have decent credit, and some money on had, you can really negotiate.

If you have bad credit or some problems with income to debt ratio, then you may have to pay the points that the lender is requiring. Your negotiating power will definitely decrease if your credit is not up to par.

In every situation, try not to pay points! They are usually accepted as exchanges for a lower interest rate. However, you may not pay less than if you have a slightly higher interest rate.

Points for an amount of 1 or 2, may be worth it because the total payment of the one time fee may be less than the total amount paid in interest above the rate that is made.

If presented with mortgage terms that are not satisfactory to you, work on negotiating new terms. Delete the points and extra fees, and ask for a deal that fits within your financial situation.

There are many choices when it comes to mortgages. Whether or not you use an adjustable rate mortgage or fixed rate mortgage, be sure to understand all terms that you may agree to. If the lender is not willing to give you an itemized report about the mortgage, then ask to see exactly where your money is going. Don’t ever sign papers without representation or reviewing the before the closing so you know exactly what it is that you are accomplishing.

Points are generally negative aspects of a mortgage, so don’t pay them if you can negotiate the terms without points in your favor.

John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://www.scourtheweb.com/mortgage/

Many people have been made millionaires just by selling homes. Donald Trump started his fortune in real estate and he is now a billionaire. There is a real estate broker in Mobile, Alabama who sells homes that suit every budget. If you have more money put aside in your bank account, then you can buy bigger luxury homes in pristine and up market postal codes. However, if you have limited budget, then you can settle for a small apartment in a suitable area. There are various homes and a wide repertoire of houses for people from all walks of life. They cater to newly married couples looking to build their families, or the single widow with no children.

Real estate affects everyone. You need to have a roof over your head. When children grow up and are financially independent, they can move out from their parents’ homes and look for new homes to stay. They can either rent or buy a new house and pay the monthly mortgage. For those with plenty of money to spend, they can start to buy auctioned homes, renovate them and sell them for a higher price when the right time comes. It is a form of investment where people can even make hundreds of thousands within a few months. More people make money by renting out their properties than they make from their full time jobs.

Lawyers are very astute in conveyancing or dealings with properties and tend to own several properties to be rented out for extra income. And the income from the rental of the said property is more than the mortgage that he or she pays monthly. With the right investment, one can make loads of cash at the right time and the right place. The wads of dollar notes can then be reinvested into more properties for further income and profits.

What’s a Point?

A point, or discount point, equals one percent of a loan amount.
For instance, one a mortgage loan of $200,000, one point would
equal $2,000.

Why Do People Pay for Points?

Some home buyers pay points to their lender at closing in order
to lower their interest rate over the life of a loan. Paying a
point on a standard 30-year loan will typically lower the
interest rate by .125 percent.

Should I Pay for Points? Buying points can lower the
interest rate of a mortgage loan, but that doesn’t automatically
make it a good option for every situation. For instance, if you
only plan to stay in the home for a couple of years, paying for
points probably won’t help you.

On the other hand, if you plan to stay in the home (and keep the
mortgage) for a long time, paying points could very well save
you money.

To find out whether or not points will benefit you, you need to
calculate your “break even” point. In other words, you need to
run the numbers to see how many months you’ll have to stay in
the home to make points a wise investment.

To calculate your “break even” point:

1. Figure out what your monthly payment would be without buying
points.

2. Figure out what your monthly payment would be if you did buy
a point (or points).

3. Subtract the lower payment from the higher to determine your
monthly savings.

4. Divide the amount charged for points at closing by the amount
you save each month. The number you end up with equals the
number of months you must stay in the home (and keep the
mortgage) to reach your “break even” point.

Example calculation:

Let’s run the numbers for a $200,000 loan for 30 years at a
fixed rate.

1. 7% interest rate with no points = $1,330.60 monthly payment

2. Buying 1 point for $2,000 = $1,313.86 monthly payment

3. Monthly savings after the point: $16.74

4. $2,000 / $16.74 = 119 months

In this example, the “break even” point is 119 months, or about
10 years. You would have to stay in the house for 10 years to
recoup the cost of the point you paid at closing. If you plan to
stay in this house for only three or four years, paying for
points would be a bad investment.

Conclusion

A point equals one percent of your loan amount. You can pay
points to your lender at closing to lower your interest rate.
Paying points may be a wise option if you plan on living in the
home for more than a few years. You should always run the
numbers to determine whether or not points are a good investment
for you.

* Copyright 2006, Brandon Cornett. You may republish this
article in its entirety, provided you leave the byline, author’s
note and website hyperlink intact.

Home equity loans and lines of credit are useful tools for homeowners. They allow the homeowner to borrow against the value of his or her home for all kinds of purposes - home improvement, debt consolidation, vacations, and more. The loans, backed by the value of the house itself, come with attractive interest rates and the added bonus of tax deductible interest. That interest, however, is often variable, adjusting up and down with changes in market conditions. At the moment, conditions are such that interest rates for adjustable rate loans are increasing while rates for fixed-rate loans are still fairly stable. This is probably a good time for homeowners with variable rate equity loans to consider consolidating their primary mortgage and home equity loan into a single entity.

The ideal candidate for such a consolidation would be a homeowner who has a variable rate home equity loan, rather than a line of credit or an equity loan at a fixed rate. A line of credit is sort of a revolving loan, with an amount that may be drawn, as needed, time and again, much like a credit card loan. A home equity loan would represent a fixed amount of money borrowed for a specific length of time. To consolidate a home equity loan and a primary mortgage, the home would have to be refinanced with a new mortgage issued for the combined amounts of both loans. There are costs associated with this, so homeowners should consider the following:

Market conditions change regularly, but now is a good time for anyone with a variable rate home equity loan with a considerable balance to consider consolidating the equity loan and the primary mortgage into a single loan. If you aren’t sure if you can benefit from this, you may wish to consult with your lender.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including HomeEquityHelp.com, a site devoted to information regarding mortgages and home equity loans .