The upside to this down market is that investors now have a plethora of investments to choose from. From sea to shining sea, you see For Sale signs popping up on front lawns everywhere. It is, most definitely, a buyer's market and will be for some time to come.
The very best deals are typically in the markets that are hardest hit. If you want to know where to investigate for investments, you should check out the following five U.S. cities for the best real estate deals:
#1 - Detroit, MI - The city hardest hit by the economy, Detroit, experienced 4.8 times the national average for foreclosures last year. Homes in this city start from as low as $1,400.00. No, that's not a typo. They literally start from as low as one-thousand four-hundred dollars. That's about $1.22 per square foot. It would cost you more to build one of these houses. So, how could you not invest in rental property in this city with prices this low? Detroit, however, is not known for its safety. No, on the contrary, it's actually the second most dangerous city in which to live in the whole U.S. of A. Regardless, you have to admit, that is some pretty tempting pricing on that Detroit real estate. Keep in mind, you don't have to live there to invest, and there are property management companies that you can hire to manage the property for you.
#2 - Stockton, CA - This city has 4.8% of its households in some form of foreclosure action. Homes in Stockton start from as low as $20,000, and rent for as low as $390 per month. That's a record low for even the Stockton area. Speaking of records, there a record number of homes being auctioned off in this area, too. It's unfathomable. Who would not want to invest in this area? Unfortunately, this city is not known for being safe, either. Stockton ranked number eight on the list of the most dangerous metropolitan areas in which to live. There are some very good deals here, though, so you may want to pencil one of these auctions into your busy investing schedule.
#3 - Las Vegas - No, it's not true. Au contraire, everything that happens in Vegas does not stay in Vegas where a 4.2% foreclosure rate has been noted. This once very booming city that sprawled with new growth is now somewhat stigmatized. Due to exceptionally rapid growth, home values became over-inflated over such a short period of time that when the real estate crash abruptly occurred there, it left many home owners holding the bag on homes that won't be worth their purchase price for years to come. In spite of this, there are still lots of good deals in this market. Home prices start from as low as $126,000. Las Vegas is also ranked fourth on the list of most dangerous metropolitan cities.
#4 - Riverside-San Bernardino - California has been one of the states hit hardest by the down economy in regards to real estate. Average home prices still beat out the national average, but individual home prices have plummeted. Homes start as low as $25,000 in these markets, record lows for both. San Bernardino is the twenty-fourth most dangerous city and eighth most dangerous metropolitan city, although, Riverside did not fall within the top cities for crime.
#5 - Sacramento - Ranked fifth in the list of best cities to buy real estate is Sacramento. Midtown Sacramento, a.k.a. The Grid, has hip bistros and shops that cover the twenty-four square blocks at its center. Even this area of Sacramento holds exceptional real estate investment opportunities, including commercial properties. Home prices start at an incredible low of $15,000 in this market. This city did not fall within the top cities for crime.
Article Source: http://www.ArticleStreet.com/
Tuesday, April 14, 2009
Friday, February 20, 2009
How Company Leaders Can Mitigate Real Estate Fraud
For leaders within the real estate industry, the topic of mitigating fraud should always be on their minds. Leadership and sustaining positive business performance begin with diligence in regards to investigating those with whom you partner. In this article we will review how information as a commodity can be a highly valued resource to real estate leaders.
While information can be viewed as a commodity, time isn’t always able to be a factored in as commoditized variable. Time has a break even point--you are either able to find a red flag early enough and follow up with an investigation, or you are too late. Being too late, by definition, would probably mean your company has become a victim of real estate fraud.
Leaders Understand the Value of Information:
Leaders know the importance of information and the role that having access to information can have on decision making. They understand the need to associate with people and organizations that are trustworthy and credible, and they focus their efforts around minimizing their company’s exposure to individuals and organizations that have a higher risk potential.
Leaders need to know about those with whom they do business sooner, rather than later. If a fraud is committed that could have been prevented, it is not desirable to be the person in the leadership role that had to the ability to possibility mitigate a fraud if only you had performed proper due diligence.
Leaders Understand the Importance of Due Diligence:
Many leaders achieve their role and status by making a series of good decisions that have positive (and profitable) outcomes. Leaders that are able to sustain a leadership position for long periods of time do so because they continue to make a continued series of good, well-informed decisions that result in continued success of their organization. Few leaders achieve a long term leadership status by ignoring due diligence and having an understanding of those they do business with.
Leaders in real estate performing due diligence and researching those you do business with can help an organization mitigate real estate fraud. Whether you perform a public records search or a court records search, by understanding the individuals you are entrusting in a real estate transaction, you are able to better understand your exposure to fraud based around the report results of the individuals and organizations with whom you are working.
The following two sections are types of verification checks you can perform on an individual or business. Can you think of real estate situations within your organization where such verification checks would be helpful?
What to Look for in an Identity Verification of Individuals:
- Social Security Number
- Name
- Address
- Drivers License
- Phone
- Date of Birth
What to Look for in an Identity Verification of Businesses:
- Name
- Address
- Phone
- Employer Identification Number
Next Steps - Implementing Enhanced Due Diligence:
Fraud can cost an organization deeply, both financially and by the public having a negative association with its brand. When people hear about real estate industry fraud, including mortgage fraud and appraisal fraud, they often are able to think of a few scenarios they have observed in their lives. Whether discussed publically in the news media or privately at an office water cooler, fraud is a topic of human interest
The next time due diligence is discussed in your organization remember the talking points of this article. As a next step, do some research online--you'll notice there are several companies that work in the information industry and offer subscription packages to assist leaders with methods to mitigate fraud.
Author : Michelle Thiel
http://www.isnare.com/?aid=331605&ca=Real+Estate
New Markets Help Malta Property
Property markets the world over are seeing sharp price declines and a real lack of serious buyers as the recession hits home.
But it seems some areas of Europe are doing better than others at attracting new buyers and maintaining current property prices, while other locations have seen much sharper drops in their real estate prices.
Malta is a good example of somewhere that has seen sharp prices in recent years, helped by a buoyant domestic market complemented with buyers from overseas looking for second homes and to move to Malta on a permanent basis, which normally entails buying a Malta property. Overall Malta property might have dropped under three per cent in 2008 if recently released bank statistics are to be believed.
And Malta is a classic example of an island that could see property prices fall through the floor as the domestic market quietens down and international buyers from her main tourist market - the UK - stop buying altogether.
But at less than a three per cent drop, the Malta property market has so far avoided the big falls witnessed by some areas of Europe, despite her main market of the UK hiting recession and the value of the British pound dropping in value against the Euro - and it has avoided the price drop by diversifying, and seeing other nationalities move into the void left by the British buyers, notably from Norway and other Scanadanavian countries.
Whether Malta can withstand the pressures of the global economy taking a downturn remains to be seen, but 2009 does depend still largely on the UK economy, which at the moment isn't looking too promising.
Malta Map
The hope of more buyers coming from countries like Norway is high, with some estimates suggesting that Norwegians could buy some 35,000 European properties between them next year, taking up some of the slack from a drop in the number of British and Irish property buyers - how many of those 35,000 buyers would be for Malta isn't easily answered, and some estate agents fear it will not match the British and Irish demand of recent years.
Looking at a map of Malta, many buyers, whether from the UK,Ireland, Norway or elsewhere tend to head to the north of the island, to areas such as Mellieha and St Paul's Bay, and with new properties going up over the last couple of years there could be some bargains from real estate developers hoping to improve their cash flow during the 2009 downturn.
And it's not just the property market in Malta that is hoping for a good 2009. The holidays industry has seen a good revival over the last three years, with the number of holidays in Malta being sold increasing each year, and cruise ship passenger number arrivals hitting record numbers too - over 500,000 for 2008.
The Malta holidays market reversed a steady decline in her fortunes three years ago when low cost airlines started flying to Malta's Luqa Airport. One major holiday company had even considered dropping Malta altogether as a holiday destination for British tourists, but the low cost flights to Malta has seen the Malta holiday industry revitalised. Without the low cost airlines moving in Malta would almost certainly be a niche tourist market now.
But there could be something that will hit both the holidays and real estate markets in 2009 which the island has no control over - the strength of the Euro - which the island now uses - and the British Pound. In spite of the property and holiday markets diversifying and attracting new markets the British market is still by far Malta's biggest. The Pound has dropped sharply against the Euro, and British tourists might be tempted to try holiday destinations such as Turkey which is outside the Eurozone in 2009 as it will offer good value for money.
There's a lot of factors which will determine if 2009 is good for Malta, the island will be hoping the dice roll favourably!
Author : Roger Munns
http://www.isnare.com/?aid=332626&ca=Real+Estate
Starting Your Search For a Lot
How to Go About Finding Lots
A common remark in the lot buying process is, “Come on, how hard can it be?” And that’s part of the problem. It’s really easy to buy things, lots included. Have money in hand, walk up to a lot and say, “I’ll take it!” And bingo you’ve just bought a lot.
The inherent problem with the whole thing is that very few people have any idea of how to actually do it right and protect themselves. Only a tiny fraction of people are aware of all the potential problems, pitfalls and issues that can come along with a lot purchase. The average American will participate in five real estate purchases in their lifetime, and most of these are in the purchase of an existing home. The average Joe will participate in the purchase of one, or zero, lots in his lifetime. The average American is not who you want to get advice from on lot buying.
The transfer of property from one person or owner to another brings with it all kinds of possible pitfalls and potential issues. Some are big issues and some are small, but all have the potential to give you a headache, cause you financial loss or burden, and generally make the lot buying and home building experience more difficult and frustrating than it has to be.
In your search for a lot you are starting on the path to fulfilling a dream for yourself and your family. This should be an enjoyable experience and hopefully this book will help you reach the goal! Finding a good piece of land to build your future home on can, at times, seem like looking for a needle in a haystack. There are several home sites available, but which one should you pick?
If you have an existing relationship with a licensed real estate agent, this is a good place to start. An agent can quickly help you focus in on several lots that fit your criteria: price, size, location, amenities, view, etc. If this will be your first real estate transaction, ask friends and business associates for a recommendation for a trusted real estate professional. Word of mouth recommendations are priceless. (I built by business on word of mouth.) You may be looking to purchase a lot in an area that is unfamiliar to you. In this case, a good place to start is simply picking up a local newspaper. Browse the classifieds, taking note of the general area or community, price points and sizes of lots in acres.
Starting your lot search online can be a very effective way to get the ball rolling. With just a few parameters, such as a general location and your budget for a lot, most real estate websites will be able to quickly tell you what is available. You can easily print out listing and take a ride in the car to check out the areas. Keep in mind, however, that only lots actively listed by an agent, or that have been posted online by the owners will be displayed.
Lots that are for sale by developers, for example in a subdivision or neighborhood under construction, may or may not be listed. Some developers rely on local contacts, private advertising or any number of other factors to get the word out about their lots for sale. Some may even rely simply on a “Lots for Sale” road sign, depending on the area and the current real estate market at the time. Let’s say you’ve got your eye on a beautiful piece of land way off on a side street. It’s not for sale as far as you know - no listing, no sign. But, you’d like to see if the owner might be talked into selling. How do you find out who owns the land? You can find ownership of a piece of land through public tax records by going online to the town or county websites or taking a trip to the local offices. Investigate!
Sometimes just by striking up an idle conversation the most incredible nuggets of information come to light. In addition to the above suggestions talk with people who live, work and play in the area you are interested in. A casual chat from the most unexpected sources can be invaluable.
One thing is clear: If you don't take your time when searching for a lot to buy and build a home on you can get really burned. Don't buy a lot you can't fix! Thanks
Author : Bill Kelly
http://www.isnare.com/?aid=332925&ca=Real+Estate
How to Buy a Home
So you’ve decided to buy a home. No matter what the economy is like, real estate remains one of the most stable, profitable long term investments available, so purchasing a home remains an excellent financial choice. But what should you do when you are preparing to buy a home?
Before you ever contact a real estate agent or begin looking at homes, you should take a critical look at your financial situation. Check your credit score with all three major credit reporting bureaus – Equifax, Experian, and TransUnion. Your credit score will affect your ability to purchase a home, and will determine the interest rate that you can obtain. A good credit score can shave one or more points off your interest rate, saving you thousands of dollars over the life of your loan.
Also, determine how much cash you have available for your down payment, moving costs, home inspection, realtor’s fees, and other costs associated with buying a home. A home purchase is often a stressful event, and you don’t want to make matters worse by going into the process without enough funds in the bank.
Once that you have established that you are financially ready to buy a home, contact a real estate agent who knows the neighborhoods you are considering. Your real estate agent will sit down with you to discuss your wants and needs, and will locate homes that may be a good fit for you. He or she will also be able to help you with many of the tasks involved with buying a home, such as scheduling a home inspection, negotiating with sellers, and setting up the closing meeting.
You should also work with a bank or other lender to obtain a prequalification letter, which tells potential sellers that you have the means to purchase the home. If you are not familiar with available lenders, your real estate agent can help you obtain a prequalification letter from a lender that will meet your financial needs.
Now that you have selected a real estate agent and obtained a prequalification letter, you can begin touring homes. Your real estate agent will likely show you numerous properties, and will look to you for comments along the way, so he or she can choose homes that fit your vision.
Once you have selected a home, you will work with your lender to obtain financing approval. Be prepared to supply documents such as income statements, three years of W2s or other tax statements, verification of employment, and bank statements. If you are a first time home buyer, your lender may also want to see one year’s worth of cancelled rent checks.
While you are working through the loan approval process, work with your real estate agent to schedule a home inspection. This will help you make sure that the home is in good condition, and allow you to estimate your repair costs after moving into the home. If there are items in need of significant repair, you can ask the seller to complete these repairs.
Finally, you will attend the closing. This meeting will be attended by you, your real estate agent, the seller and his or her agent, the loan officer, and the title officer. Here, you will complete your loan and title documents, and take official possession of the home.
Author : Mark S. Lackey
http://www.isnare.com/?aid=347696&ca=Real+Estate
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