Finance Tips

“Real estate investing saw a major boost in the past two years, as buyers who would have waited otherwise opted to take advantage of falling market rates. In particular, distressed homes such as short sales and foreclosures have become the top choice for practically all buyers. But is real estate foreclosure and short sale investing really worth your time? Its not for everyoneit takes market knowledge and expertise to get your fair share in these kinds of deals. If youre new to short sale investing or the Short Sale Foreclosure business, here are some facts worth keeping in mind.

Distressed Sales Take Time

If youre in a hurry to get your hands on real estate, this may not be the market for you. A real estate foreclosure or short sale deal takes time not just to negotiate and close, but also to plan. Months before you make your decision, you should do at least some research and decide whether short sale investing is a good idea in your particular neighborhood. Factor in past and current market values, the number of homes available, and your own financial capacity to make sure youre taking the right step.

You Need A Good Agent

No matter how much experience you have or how much you know the industry, a capable agent is vital to getting a good deal. For one thing, they have more connections in the real estate business, from sellers and listing agents to mortgage brokers who can help you find the right financing plan. Find one with experience in the Short Sales
investing or real estate foreclosure market, and ask for references from previous clients if necessary. It may seem like too much, but a good agent is always well worth the trouble.

Long-term Planning Is Essential

Whether you plan to live in your home for years, rent it out, or use it as a second home, it pays to plan beyond closing. If you want an investment property, a real estate foreclosure may only pay off after several years, depending on the area youre buying into. How long can you wait for profits to start? Or if youre looking for a primary residence that you can pay off with a 30-year mortgage, how much can you save over the term of the loan if you opt for short sale investing? You can discuss these matters with your agent and make sure you wont be on the losing end.”

With the new developments of mobile marketing, mortgage and real estate professionals must be reaping the benefits. Text message advertising offers real estate agents, property managers and mortgage brokers unparalleled and immediate access to vital customers since the cell phone has become the most desired technology. Traditional marketing methods such as email, print or direct mail are fast becoming tools of yesteryear. These days, it is Twitter, Facebook and mobile media.

Considering the declined state of the real estate market and the struggles that most people are faced with, powerful and affordable marketing strategies would be the solution. Mobile media is definitely essential in present-day society. It is interactive, permission base and customers are involved with it.

What does this indicate for the mobile marketing techniques for Realtors, property managers or mortgage brokers?

It’s really simple, mobile marketing will be the most life changing business technique we have seen within the last ten years. It is not just the access to clients that will give you an advantage over the competition, as consumers likewise appreciate the dedication and attention which is coupled with this type of marketing.

The business cards in paper are out and the text message versions are in. As an alternative of giving out business cards, you can send your details to clients in text message format. This is a straightforward way for real estate agents to build up a database that is “permission based.”

Realtors and property managers are able to keep in better keep in contact with potential clients by texting information in real-time to inform them of new property developments. This will speed up the sales process and clients will feel as if they are superstars. This type of marketing can increase follow ups on prospective and guarantee client satisfaction.

Real estate investors are constantly in search of great opportunities. As an investment advisor, these opportunities will quickly disappear so being able to send text messages to a selected group of investors in short notice will be critical.

Online home mortgage quotes are very similar to the quotes given by mortgage brokers in “the real world,” except lower. With the reduced cost due to a simplified application process and reduce overhead for office space and personnel, online mortgage lenders can offer financing with no fees or lower interest rates.

Looking At Fees

Fees are the hidden costs of loans. Mortgage brokers are paid in fees or points on the mortgage loan. The advantage of a mortgage broker is that they find the best mortgage rates for you. So even with their fee added into the loan, you still can expect to save money.

Online mortgage brokers have automated much of the mortgage loan process, reducing costs. As a way to stay competitive, many of these lenders have eliminated or reduced their fees.

Interest Rate Quotes

Both traditional and online mortgage brokers can give you an instant generic interest rate quote to narrow your choices from a mortgage lender. However, to get a true quote, you will need to provide detailed personal and financial information. With a traditional mortgage broker, the process can take a couple of days to process the information and meet with the mortgage broker to review rates.

Online mortgage lenders connected all their databases to be able to provide you with a near instant quote. Occasionally there can be delays in processing your information if you have recently moved or changed names or jobs.

Difference Is Sales Styles

Online and traditional mortgage brokers differ in their sales style when relaying quotes to you. A traditional mortgage broker will use sales tactics to pressure you to complete the mortgage application right there. Many people feel the need to make a quick decision rather than taking the time to process the information.

Online mortgage lenders offer a different approach; they provided the information, then wait for you to take the next step. After requesting a mortgage quote, you will receive rates either through the website or through email that you can review at your own pace. You can choose to apply with a specific mortgage lender, or decide that none of them are best for you.

To view our list of recommended mortgage lenders online, visit this page:
Recommended Mortgage
Lenders Online

Reverse mortgage rates are not different form traditional mortgage rates, and when you are applying for a reverse mortgage you should make every effort to find the lowest reverse mortgage rates you possibly can. While comparison shopping takes time, you can help your own cause by taking advantage of the reverse mortgage calculators available on one of the many reversed mortgage Internet websites.

You will have to pay interest on your reverse mortgage loan regardless of whether you receive your money as a single lump sum, in monthly installments, or as advances on a credit line. In the US, reverse mortgage rates are tied to the US Treasury rate, and like all adjustable mortgages rates will fluctuate as it does.

The Margin Is The Difference

Because of this, any money you save on your reverse mortgage rates will be as a result of the competition among lenders. Their margin–the amount they charge in interest over and above the variable treasury-based reverse mortgage rate, will vary from company to company. Lenders can adjust their rates anywhere from once a month to once a year.

Fixed-Rate Reverse Mortgages

Fixed-rate reverse mortgages are the exception to the rule, although they have become more available in recent months. One limitation on a fixed-rate reverse mortgage is that the borrower must take his or her money in a single payment; monthly installments and lines of credit are not permitted. Fixed reverse mortgage rates, in early 2007, were hovering in the low end of the six percent range, not including the lenders’ margins.

Your fixed mortgage rate will have nothing to do with your credit history or your income. Even low-income senior citizens who have paid for their homes are eligible for reverse mortgages; they, in fact, are the individuals for whom reverse mortgages are primarily intended.

You can get a better idea of reverse mortgage rates by researching both online and brick-and-mortar reverse mortgage brokers; many brokers have both websites and offices. Find the best online rate you can, then take it to the reverse mortgage lenders in your area and use it as a negotiating tool if necessary.

You can find a list of legitimate reverse mortgage lenders close to you by doing a search on the National Reverse Mortgage Lenders Association–NRMLA–website, searching by the name of the state in which you live, and then whittling down the results to lenders in your area. All NRMLA lenders are committed to upholding a Code of Conduct, which means they will deal with you fairly in the reverse mortgage process.

A buy-to-let mortgage is a form of investment which can offer more security than the less predictable stock market. It comes with no guarantees, but as the nation gets more in debt and standard mortgage applications are being turned down, people are looking more at renting properties as opposed to climbing the property ladder themselves.

If you are in a fairly stable financial position, you could capitalise on this by looking at buy-to-let mortgages. Do a little research first and seek out others who have had them to hear their views. If the response is positive, take a look around your area. This will help you realise your target audience, and in turn the type of property to go for.

Are there schools, supermarkets, quiet roads? Perhaps a 3 bedroom semi-detached with a garden for a family would be a good idea. Flats located near a business park will attract young professionals. Students will flock to a house near a university. Try looking a little further afield too, you don’t have to restrict yourself to your own area. Just make sure you’re close enough to visit the property on a fairly regular basis to keep an eye on things.

Once you’ve decided on a tenant base, start making enquiries about mortgages and house prices in the area of your choice. There are specialist buy-to-let mortgage brokers who will help you select the right mortgage and advise you every step of the way. Most BTL mortgages will only cover 80% of the property value, so you’ll need a sizeable deposit. You’ll also need to find out the average rent prices in your area and make sure that they will cover the repayments plus money for repairs, taxes and any other costs that will arise.

All mortgages have pitfalls, and a BTL mortgage is no exception. You may have dry periods where the property is empty, or you may find it needs some major repairs doing; you’ll need to prepare for any contingencies and add the cost to your rent.

If you don’t feel that you could cover all these costs with a reasonable rent for your area, then don’t invest just yet. Keep an eye on house prices and consider the possibility for the future instead.