Real Estate Tips For Investors

The world of real estate investing requires many things, none are more important than patience. If you rush to close on a house it can cost you so much, thousands, even hundreds of thousands of dollars. You have to be cautious and make sure you are making the right moves; you are not only investing in a house, but into a community. You can have the nicest house on the block, but if it is in a bad neighborhood that is going to hurt your property value. Another thing to consider is the condition of the house, how much work will it need? Do you want to buy a house that is dirt poor cheap and needs work because you think you can fix it under a budget that will help increase your profit, or do you want a house that costs a bit more but needs a lot less work? These are all things to consider when investing.Because of the recent housing decline and high foreclosure rates, there are great deals every where for investors to find. The trick is to be able to find the house that you can afford and then decide if you are renting it out or trying to flip it for a quick profit. Regardless of your choice, you will need to get financing for the purchase. That is where a bank loan comes in. The banks are requiring three things to be considered for approval; a good credit score, established income to show you can afford the mortgage, and a down payment on the house. 100% financing is next to impossible to get with any bank these days. If you have a poor credit score you can look into a credit repair company. These companies can fix your score in a matter of weeks, and can save you time and money.

Real Estate Tip: Escrow Accounts — Do You Really Need Them?

If you have a mortgage on your property, whether it’s for your personal residence or a real estate investment, chances are you have an escrow account. But if you are working on building wealth through real estate, you may want to take a hard look at your escrow account (or accounts, if you own more than one piece of real estate) and decide if you really need it.Escrow accounts, also known as impound or reserve accounts, are often maintained by mortgage lenders on behalf of their borrowers. They typically work like this: the borrower’s monthly payment covers the loan principal and interest, as well as a prorated amount that is deposited into the escrow account. The lender holds those funds and uses them to pay taxes and insurance for the property when those bills come due on an annual or semiannual basis.There are a number of benefits to both lenders and borrowers. Serious problems can arise when taxes and insurance bills are not paid, so having that money in escrow helps reduce the lender’s risk. The lender also benefits by having funds on deposit; most states don’t require lenders to pay interest on escrow accounts, but they can certainly earn money on them. And secondary market buyers who purchase mortgage notes generally pay more for loans that have escrow accounts.Many borrowers prefer the convenience of spreading the payment of a big bill over 12 months instead of having to make it at one time. Also, the lenders take care of tracking tax and insurance bills, so the borrower doesn’t have to. However, if the value of the property is high–creating correspondingly high tax and insurance bills–the borrower is losing interest. Or, if you are a real estate investor with multiple properties, the total of your escrow accounts could be substantial.
For example, if your taxes and insurance run a total of $12,000 a year and you have an escrow account, you’re losing hundreds of dollars in simple interest and even more if you were to put that money in a higher-yield investment. And when you own several properties, the cost of the convenience of an escrow account increases accordingly. As part of your overall wealth-building strategy, you could put that money in a short-term investment (perhaps a property you intend to quick-turn) and let it work for you until you have to pay your taxes and insurance.Policies on escrow accounts vary by lender and according to state law. Generally, escrow accounts are required when the loan-to-value ratio is 80 percent or higher. Some lenders charge a fee to waive the escrow account; before accepting such terms, be sure the cost of waiving escrow is less than the potential earnings from the interest.Finally, be sure you have the discipline and resources to pay your property taxes and insurance on time before you take the step of eliminating your escrow account.

Sarasota Real Estate – Tips For Out-Of-Town Buyers

In this day and age, the Internet has managed to spawn a plethora of opportunities for people who are planning to invest on real estate. Rather than spending extra money for travel expenses to-and-fro their preferred locations, technology has allowed prospective buyers to search, compare and contrast various properties of interest in the comfort of their homes. The case is pretty much the same in the Sarasota real estate market. Home sellers can now post their offers online for potential buyers to see, along with actual photos of their homes.Despite the apparently efficient system of browsing through a myriad of online property listings, prospective buyers should never undervalue the importance of hiring a Sarasota real estate agent. Contrary to popular belief, a realtor’s job actually transcends the mere act of helping you find the perfect home. Out-of-town buyers, in particular, would really benefit a great deal from taking a real estate agent into service.The Primary Focus Of A Buyer’s AgentOne of the better-known tasks of a buyer’s agent is to assist you in your pursuit of that ideal residential property. A realtor’s edge normally comes from having an in-depth knowledge of the Sarasota real estate market, of the different neighborhoods, and of the present home inventory in the area. Apart from that fundamental task, a buyer’s agent will also navigate you through tons of offers, the whole negotiation process, and the legal aspects of buying a real estate property — regardless of whoever came across that particular find.What Out-Of-Town Buyers Should Look For In An Agent?If you’re a potential out-of-town buyer of a Sarasota real estate property, you may want to make a note of the things you should look for in an agent. Here are some useful guidelines in choosing a buyer’s agent.* The real estate agent should be willing to maintain an open line of communication with you even though your trip is still months away. He or she should show eagerness in talking to you about the Sarasota real estate market, the area, and the property that would suit you best.* The real estate agent should constantly send property listings and exhibit interest in getting your feedbacks long before you arrive in Sarasota. Though some of the listed properties may not be available by the time you get there, your comments would somehow paint a picture of what you’re looking for in a home.* The real estate agent should find time to provide you with an informative tour of the Sarasota area. This way, you can familiarize yourself with the different neighborhoods and eventually make your mind up about a particular location. The guided excursion would also give you an inside look at the place you have chosen to live in.* The real estate agent should not force you into making a decision about a particular Sarasota real estate property unless you are totally prepared to do so. Patience is certainly one of the most important values that a realtor should possess. For that reason, you should definitely avoid making a hasty choice when it comes to selecting an agent. Remember that choosing one is similar to the task of picking out a house. So always take your time to think things through.