Index of Articles
Investing in Property - A Solid Investment in Spite of the Cycles
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If you are interested in investing money, you may want to consider buying real estate. Investing in property is an excellent idea and there are definitely many reasons that so many people have got involved in property investing today. You'll find that there are a variety of different reasons that investing in real estate instead of going with other investments is a route that is more profitable and safer as well. Let's take a look at some of the reasons that investing in real estate today is one of the best investing options that are available to you.
First of all, it's important that you take a look at the real estate market as a whole. Many people take a look at the real estate market right now and because it has gone into a bit of down time, they think that this is a bad market to invest in. However, as you look at how real estate has performed as an investment over time, you'll notice that there are not near as many fluctuations in the real estate market as there are on the stock market. Sure, there are going to be cycles that the real estate market goes through, but the down times are less drastic than that on the stock market, making this a great type of an investment for investors who really want to make money.
There isn't Any More Available
One of the main reasons that investing in property is such a great idea is because there just isn't any more. You can't expect there to be more property made in the next 5 years. There is as much property now as there ever will be, which means that it is a limited resource that is available. This means that it is a valuable asset to have and it will always be worth something, even if the real estate market does fluctuate from time to time. So, this means that this is an investment that is very safe, making it a top investing opportunity for people who are interested in investing money today.
Great Tax Breaks
Another great reason that buying real estate is a great idea is because of the great tax breaks that are available from the government. Real estate investors can benefit from a variety of great tax breaks from the Federal government. When you reinvest the money that you make from the sale of real estate, then you can defer the capital gains tax, saving quite a bit of money. So, this means that as long as you keep reinvesting the money that you make and you put in into another investment, you'll not have to pay any taxes on the profit that you make. This provides investors with a lot of great freedom that cannot be found with any other type of investment that is out there today.
Anyone Can Do It
You'll also find that this is a great investment opportunity because anyone can get involved in real estate investing. This is an investing area where amateur investors can get involved. It's a market that is very safe and profitable, which is another reason why so many investors start to get involved in this type of investing. It's easy to find information in real estate investing that can help you get started. If you have good credit and money to use to get started, you can really get a nice income opportunity going in the real estate investing market.
Often You Can Use Other People's Money
When you decide to get involved in real estate investing, one of the great things about it is that you're often able to get involved by using other people's money. You'll find that it is fairly easy to get loans on property today because if you are not able to pay the loan back, they'll be able to get something back that is wroth something. Other types of investing are very different and most banks are not willing to give out loans so you can go invest the money in the stock market. You'll find that real estate will always be worth some money and eventually it will probably even go up in value somewhere along the way.
Even in a time where the market seems to be in a down time, you'll still find that there are plenty of real estate investors out there that are investing in this market. Why? Because it's a safe way to invest and there are plenty of great perks available that make it a top investment.
Characteristics of a Successful Real Estate Investor
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Are you interested in getting involved in real estate investing? If so, then no doubt you want to make sure that you are successful. There is a whole lot of money to be made in the real estate investing market today if you are a great real estate investor. However, there is a difference between an investor that makes a bit of money and a successful real estate investor. There are certain characteristics that successful investors tend to have that help them to become successful as they begin to invest in real estate. So, let's take a look at some of these great characteristics of successful investors so you can learn what you'll need to become successful in real estate investing.
Characteristic #1 - Having a Plan and Using It - One of the main characteristics of a successful real estate investor is that they have a plan and then they use it. Having a plan is the easy part, and anyone can do this, but using the plan and sticking to it to actually meet your goals is a different story. Investors that are successful actually not only have a good plan and great goals, but every day they have plans that will help them to reach their goals in the future.
Characteristic #2 - Protecting Your Assets - Another characteristic of a great real estate investor is protecting your assets. The last thing you want to do is have a great real estate portfolio, only to allow one thing, such as a lawsuit, take everything from you. It's so important that real estate investors find ways to make sure that their assets are protected from plaintiffs, creditors, and taxes. It can take time and effort to do so, but if you are going to succeed at real estate marketing, you'll have to make sure that all of your assets are protected.
Characteristic #3 - A Good Code of Ethics - A great code of ethics is another valuable characteristic that is imperative if you are going to succeed as an investor. Real estate investing is all about dealing with people. There are agents to deal with, renters, sellers, contractors, and more. It's important that you have a good code of ethics when you are dealing with people. Make sure that you think about everything you do and how it affects others when you are getting involved in real estate investing.
Characteristic #4 - Get Families Involved - Getting your family involved is important, since you'll need the support of your family if you are going to be a true success. Explain your business to the family and let them know about the type of support that you'll need. If your spouse is a bit wary of the real estate investment market, you'll find that this is often because they really don't know much about the way the market works. Often getting them involved can make a huge difference.
Characteristic #5 - Treats Others Well - Treating others is very important as well if you are going to succeed in real estate investing. Your reputation is going to be important when you are involved in investing in real estate. When you take the time to help others, it will help your business and lead you along the road towards success yourself. So, you'll need to make sure that you build up a good reputation of working with others and treating them well.
Characteristic #6 - Keep Up on Education - Great investors in the real estate market also have the characteristic of keeping up on their education. Laws in real estate change from time to time. It's so important that you keep up on the market and any new laws that are out there. When things change within the real estate investing market, you'll find that your business is going to be affected by these changes. You'll need to be constantly learning if you are going to be successful. If you get behind on your education, you'll soon find that you are losing profits. So, it is imperative that you get as much education as possible and stay on top of what is new in the real estate investing market today.
Characteristic #7 - Become Mentors - Most successful investors go on to become mentors. Successful investors have mentors that help them to get involved in the market, and once they become successful, they go on to mentor others. This is a sure sign of success. When you are able to mentor someone else in this market, it is a true sign that you have arrived. You'll be able to help others to do what you have done and it will give you your own feeling of accomplishment as well.
As you can see, there are a variety of great characteristics that make up successful real estate investors today. Having these characteristics is important if you are going to be successful. So, even if you don't have all of them right now, you know what you need to be striving for in your life.
Real Estate Education Options for the Savvy Investor
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Unfortunately today there are many people who seem to think that getting involved in real estate investing means that they simply purchase a home and then sell it trying to make a good profit. This is not the case. You need a good real estate education if you are truly going to become a savvy investor. People who make any money at all without a good real estate education really are merely lucky and sooner or later they'll end up dealing with problems that will show how shallow their investing knowledge really is. A good education in real estate investing can really help you to avoid a lot of problems in the future.
Although it used to be a bit easier to invest in real estate, it's quite a bit harder now. It's more difficult to find great properties, especially with the people who want to just make a quick buck. It's important that you get the real estate education that can help you find great properties so you can be sure that you make money on the investment. Of course home inspections come along as well, and a good education can help you to determine if the home is really a great buy and you'll learn how to deal with home inspections.
Often there are people who get started in real estate investing and they get so excited that they forget about a great education and about looking into repairs that are needed, and then they end up losing money in the long run. You'll also find that financing can be difficult to find without a good education as well, and you need to really know what you are doing if you are going to borrow money to invest with. So, as you can see, it is imperative that you get a great real estate investment education if you want to make the most of your investments. Otherwise you'll end up dealing with problems, wasting your own time, and wasting your own money as well, which can be a very painful lesson.
There is no excuse for not having a good real estate education behind you, since there are so many different options available where you can get a good education. Here are just a few of the education options that you have so you can learn more about how to purchase real estate and sell it for a profit.
Option #1 - Real Estate Seminars - First of all, you have real estate seminars, which are a great option for real estate education that will help you learn more about real estate, how it works, and how to invest wisely. Usually you'll find that there are seminars all around the country, so finding one near you should not be difficult. Some of them may cost you, but they are great investments and you'll even find that there are other seminars that won't cost you a cent.
Option #2 - Real Estate Courses - Real estate courses are another great option when you need a good education in real estate. You can take real estate courses at a community college and some colleges may offer online classes that you can take as well. They will provide you with a great base in real estate so that you are able to go out and have the education needed to become a savvy investor that can really make a great profit from your investments.
Option #3 - Online Investing - Online investing sites can be found as well. Some have great information available and others will have teaching tools that will help you to learn how to make the right real estate investing choices. These are great options for you if you don't have the time or money to actually take courses in real estate.
Option #4 - Real Estate Forums - All you have to do is look online and you'll find that there are many great real estate forums out there that cater to people who are interested in real estate investing. These forums are full of people who have already become successful investors in the real estate market. You can real through topics, ask questions, and read responses that will help you learn even more about real estate investing. Getting involved in a forum can help you to find successful investors that are willing to share tricks of the trade that will educate you and help you to become successful yourself in the real estate investing business.
Option #5 - Real Estate Mentor - Finding a good real estate mentor can be a great education in itself. You'll find that there are many successful investors out there that are willing to mentor other investors who want to learn. Some of the best education in this market can come from real estate mentors that help you along the way as you start out in the real estate investing business.
Option #6 - Actually Purchasing Real Estate - Of course once you get other forms of real estate education, you'll find that purchasing real estate and going through the investing process will teach you a lot. While you can get a lot of great education that will help you to become a successful investor, you'll also find that purchasing real estate yourself will teach you practical lessons that you won't ever forget.
Foreclosure Sales - A Real Estate Agent Can Help
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Today you'll find that there is a lot of money that you can make by going to foreclosure sales and purchasing them to sell again and make money. This is one great way that many investors make their money today. Although some of these properties are considered to be distressed properties, you'll find that they are worth investing in. In fact, many investors make their money just from investing in bank foreclosures. So let's take a look at how you can find foreclosure listings and how to find a great foreclosure real estate agent that can help you to find the listings that you want and need.
Finding Foreclosure Listings
Sometimes you'll find that finding foreclosure listings is the tough part when you want to invest in foreclosures. Although there are many foreclosed homes out there today, just finding good ones to invest in can often be a problem. So, how can you find bank foreclosures and bank owned properties? Well, here are a few ways that you can find some great foreclosure sales and listings to invest in.
- Searching Online - One great way that you can find foreclosure listings is to take a look at the foreclosure websites that are available on the web today. Just looking online is a great way that you can find out about foreclosure homes in your area and REO properties as well. Although it will take a bit of time on your part, you'll definitely find that this can be a great way to find the foreclosure properties that you are looking for.
- Looking Through Public Records - Looking for public records can help you to find out about foreclosure sales that are available in your area as well. Foreclosures have to be listed on the public records and you can easily find them through this venue.
- Local Newspapers - Another way to find great foreclosure listings it to take a look at your local newspapers. Most of the time bank sales and foreclosure sales are listed in local newspapers and you'll be able to find out about them before they happen quite easily this way.
- Using a Real Estate Agent - Using a real estate agent is probably one of the best ways that you can find foreclosure lists to help you find great foreclosures to invest in. Going with an agent that is in your local area is an excellent idea and they can provide you with various services, such as an MLS foreclosure search, first hand knowledge of foreclosure sales, and even information about pre foreclosures where you may be able to purchase a property through a short sale.
Tips for Finding the Best Foreclosure Real Estate Agent
Of course if you are going to go with a real estate agent to help you find good foreclosure listings, you'll want to find the best foreclosure real estate agent possible. This is very important if you want to succeed at investing in foreclosure properties. So, here are a few tips that will help you to find a top quality agent that is skilled in handling foreclosures.
- Tip #1 - Look for Agents in Your Area - First of all, you'll want to make sure that you look for agents in your area. This is important because you'll want to go with an agent that is familiar with the local market and any local foreclosure sales that will be going on. An agent in a town 100 miles away may not be able to provide you with the help that you need.
- Tip #2 - Make Sure They Have Experience with Foreclosures - You'll also want to make sure that you go with a real estate agent that has experience with foreclosures. Investing in foreclosures is not easy and it takes experience. The last thing you need is a real estate agent that doesn't even know how to do a MLM foreclosure search for you. So, if you want a great agent that will help you out in this area of investing, make sure that the agent has experience with dealing with foreclosure properties.
- Tip #3 - Ask for Referrals - Asking for referrals is a great idea as well when you're trying to find the best foreclosure real estate agent. Take the time to ask other foreclosure investors about the agent that they work with. If you have an agent in mind, ask that agent for some referrals that will give you an opinion of how they work with foreclosures. A good track record will speak for itself.
- Tip #4 - Look at Foreclosure Signs - If you're out looking for properties that are being foreclosure on, then take a look at the foreclosure signs that you see. Take note of names and numbers of the real estate agents that are handling these foreclosure sales. This will give you some ideas of real estate agents in your area that work with real estate foreclosures already.
- Tip #5 - Get Recommendations from Other Professionals - Getting recommendations from other professionals is a great idea as well. Talk to other investors and find out who they use when they are dealing with foreclosure listings. Usually other real estate investors will be able to help you find the best foreclosure agents around that can help you to find great foreclosure listings so you can make money investing in foreclosures.
Becoming an Accidental Landlord in the Twin Cities
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A new phenomenon that has occurred in the past couple years is the phenomenon of an "accidental landlord." There are actually more and more home owners today that are becoming landlords by default for a variety of different reasons. This is something that is occurring over and over again in the Minnesota area, and there are many people who are ending up with Minnesota rental property instead of actually selling their homes. So, let's take a look at how these people become a twin cities landlord with homes and condominiums for rent, and some tips that will help you decide yourself whether you want to sell your home or go ahead and rent your home out to tenants.
Many People Never Set Out to Be Landlords
It's important to realize that most of these people really never set out to be a landlord. They purchase a home, and then when they need to get a bigger home, they often deal with problems selling, leading to them becoming accidental landlords. Although this is often a better option than selling in a bad housing market, people find that being a landlord and dealing with tenants brings along it's own set of challenges as well. So, this means that many people are ending up being property investors even though this was never their intent, since they find that renting in this market is a better option to them.
Reasons People Become "Accidental Landlords"
There are a variety of different reasons that more and more people are becoming accidental landlords and are renting out their homes and condos today. Here are just a few of the reasons that people are becoming landlords by default.
- Reason #1 - Home Values are Falling - One reason that so many people are becoming a twin cities landlord today is because home values are falling and they've been falling fast. Because the values of homes are falling so drastically, this means that if you want to sell your home, you'll end up taking a loss in many cases. This is not an option for many people, and so instead of taking the loss and selling anyway in a bad market, they decide to go ahead and start renting out their homes, so their home turns into a Minnesota rental property.
- Reason #2 - It's a Buyer's Market - Another reason that accidental landlords are flourishing today is because it is now a buyer's market. It's just not a great time to sell right now. Sure, buyers are finding some great deals today, but sellers are really losing out when they try to sell. Instead people can profit more by renting out their homes or putting up their condominiums for rent instead of trying to sell them.
- Reason #3 - The Rental Market is Flourishing - Although the real estate market is having it's problems, the rental market is really flourishing, which is another reason that so many people are deciding that it's a great time to rent rather than to sell. Because of all the problems in the housing market today, there are more and more people who are having to rent. This is great for landlords, since they are usually able to easily rent out their properties without a problem.
- Reason #4 - You Can't Make Money Selling Right Now - There's just not money to be made if you try selling right now. Home owners are finding this out. Since they can't make money, and in many cases they can't even break even when they try to sell, they settle for becoming a twin cities landlord instead and making their money from renting out their property.
Deciding Whether to Rent or Sell
Of course you must make the decision for yourself as to whether you want to rent or sell your home during this time. Here are a few things to consider if you're trying to make the decision whether or not to sell or rent out the property you own.
- Have Your Home Appraised - Before you can make the decision on whether to sell your home or rent it up, it's important to have your home appraised. You need to know what your home is worth and what you can expect to get on the market today. If you're going to lose money, then you may want to start renting it out.
- Figure Out if You can Get Enough Rent to Cover All Costs - Of course you also need to figure out if you can get enough rent to cover all your costs. Remember, you may have to start paying non homestead taxes and your homeowners insurance will probably go up as well. If you can't make enough on the rent to cover costs, then you may want to sell anyway.
- Are You the Price of the Home will Rise in the Future? - Ask yourself whether you think home prices are going to go up soon. If they are, then renting for a couple years is an excellent idea.
- Make Sure You're Not Losing Your Tax Break - You definitely don't want to lose your tax breaks on the home if you rent it up. Usually you're okay if you rent less than three years, but if you rent out the home for more than three years, you are going to start owing capital-gains taxes on the profit you've made on the home.
- Remember the Risks - Last of all, you need to remember the risk before you become an accidental landlord. There is the risk that you won't be able to rent out the home right away and the risk that tenants won't pay. Are these risks that you are willing to take? If so, then go ahead and start renting.
Rental Insurance - Protecting Yourself
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It is always important that you work to protect yourself, whether you are a landlord that is renting out a home or whether you are the tenant who is renting from a landlord. You never know what can go wrong on both ends of the deal, so having rental insurance is definitely a must. Of course you'll find that there are particular options for renters when it comes to renters insurance and then there is special rental property insurance for landlords available as well. Although many people may think that a landlord should be insured, they often forget to realize that it is so important that they have insurance while they are renting as well. So, let's take a look at both landlord rental insurance and renters insurance for tenants.
Landlord Rental Insurance
Having your own insurance as a landlord is very important if you are going to rent out properties. It is important that you are well protected when you are involved in renting property and good insurance can help to keep you protected if you lose income, if there are legal disputes, and if something bad happens to your property. There are a variety of different options available and coverage for many different situations that is available. However, there are some basics that you'll always want to make sure are included in your policy. Here are the fundamentals of a policy for a rental insurance policy for landlords.
- Property Coverage - First of all, you'll find that property coverage is going to be important if you own rental property. When you go with landlord rental insurance, you'll want to take a look at your policy to see what kind of property coverage you have. You'll want to make sure that your insurance policy covers the rental building itself, any other structures that you have on the property, such as the shed or a garage, and your own personal property that may be stored on the rental property should be covered as well.
- Protection from Lawsuits - Another important thing that you need to look for when it comes to your rental insurance as a landlord is protection from lawsuits. When you are renting out property, this is a huge risk that you will face. If people get injured while they are on your rental property, they could try to sue you. For this reason, having good insurance that will protect you against these lawsuits is important and will definitely come in handy if you every deal with this type of a problem.
- Protection in Case of Loss of Rental Income - Loss of rents coverage is also very important if you are a landlord. If for some reason you end up not getting the income that you are supposed to from your tenants, you still have to come up with the money to pay the mortgage. This type of insurance helps you to make sure that you'll be insured in case you do lose your rental income.
Renters Insurance for Tenants
Of course renters face many risks when they are renting as well and renters insurance is definitely an important purchase. If disasters strike, you'll be at the same risk as someone that owns their own home. While the landlord probably has their own insurance, it is not going to protect all of the things that you own. For this reason it is so important that you have good renters insurance that will provide you with the coverage that you need for all your goods when you are renting. So, let's take a look at some of the things your insurance will cover.
- General Coverage - First of all, let's take a look at the general coverage that you'll get with renters insurance. Your personal property will be protected by your insurance in the case of several different types of perils. Some of these perils that are covered include hail and windstorms, aircraft and vehicle damage, volcanoes, lighting, fires, riots, falling objects, theft, vandalism, smoke, explosions, weight of snow, accidental cracking of water heaters and air conditioners, water damage from appliances, sprinkler systems, air conditioning, and plumbing, freezing of the plumbing, and electrical current damage. Of course it is important to realize that earthquakes and floods are not included. If you think that you may have a problem with either of them, then consider a separate policy.
- Taking Inventory of Belongings - When you are purchasing renters insurance, you'll want to take the time to take inventory of your belongings. This is important, since you'll want to be reimbursed if something happens. You can do this by keeping receipts, documenting with photos or videos, and writing down all the items and serial numbers of valuables that are in your home.
- Other Benefits - There are other benefits to going with rental insurance as a tenant as well. Often your policy will provide you with liability coverage if some falls and sues you. Also, if you have to move out because of a problem in the rental, often the insurance will cover the expenses of living somewhere else if you have to.
The Foreclosure Process and Alternative Options
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Unfortunately there is a huge amount of foreclosure that are going on across the United States, and Minnesota is no expensive. There have been many people who have ended up bailing out on a Minnesota mortgage, only to end up having their home foreclosed on. It is both difficult for mortgage companies as well as homeowners and so many foreclosures are occurring. Even though there is a redemption period in Minnesota that is 6 months if you have a primary residence, you'll find that there are still far too many foreclosures occurring. Let's take a look at the stages of the foreclosure process, the reasons so many lenders are not interested in distressed real estate in MN, and some alternative options to foreclosure that you have as a homeowner.
The Stages of the Foreclosure Process
First of all, it's important that you understand all the stages of the foreclosure process. Basically a foreclosure happens when owners can't make their payments, which leads to the piece of real estate being taken and sold by the lender in order for them to try to recover the money that they lose from the mortgage. Here are three stages in the foreclosure process.
- Stage #1 - You Miss 3-6 Payments - The first stage of the foreclosure process is that you start missing payments. While usually you'll find that the lender can't do something right away, once you miss 3-6 payments, you'll find that this can begin the first stage of the foreclosure process. If you begin missing payments, it is important that you work to find a resolution before it even gets this far in the process. You'll have more options the sooner you try to solve the problem.
- Stage #2 - Notice of Default - The next stage is when you get a Notice of Default. After you have missed too many payments, then a trustee is going to be ordered to record one of these notices by the lender. This is done at the County recorder's Office. This means that you will be notified that you are going to face a foreclosure in the future. Then you have a reinstatement period that will go until about 5 days before the auction of the home.
- Stage #3 - Notice of Sale - The next stage in the process is the Notice of Sale. If the loan is not brought current, then the sale date will be made. The notice of the sale will also be put up on the property as well.
Reasons Lenders Don't Want Distressed Homes
Many times when people are going through a foreclosure, they cease to care about their home. Often they are not able to keep up with repairs that need to be done, which can lead to the homes becoming distressed. Most lenders out there are not going to want to own distressed real estate in MN for a variety of reasons. Here are a few of the reasons that they don't really want these homes that have become distressed.
- Reason #1 - Too Much Work - First of all, dealing with distressed real estate in MN is just too much work for lenders. Usually they come with problems that would have to be fixed before a sale could occur. Lenders just want to get their money and they don't want to spend time working on the property. So, this is one reason that they don't want these homes.
- Reason #2 - Costs Money to Fix Problems - Another reasons that they don't want to deal with distressed homes is that it takes quite a bit of money to fix up these homes much of the time. They are already facing a loss, so the last thing they want to do is actually spend money trying to fix up homes that have been distressed due to problems with foreclosure.
- Reason #3 - They Lose Money - If lenders end up having to deal with distress real estate in MN, usually they end up losing money. They are working to find options where they don't lose a huge amount of money. Distressed homes will just make them lose more money, so they don't want to have to deal with them and will look for other options
Alternative Options to Foreclosure
Of course there are some alternate options to foreclosure that can help out homeowners and lenders alike. Finding an option to foreclosure is definitely a great idea. Here are just a few of the best options to foreclosure that can save the day if you are facing a foreclosure in the near future.
- Option #1 - Refinancing - One option that you have is refinancing when you are trying to avoid foreclosure. In some cases you may be able to get a mortgage refinance that will bring your mortgage current and help you to avoid going through the foreclosure.
- Option #2 - Forbearance - Forbearance on the part of the lender is another option. However, you'll have to prove that you are having financial difficulties if you use this option.
- Option #3 - Short Sale - A short sale is an excellent option that is available if you are trying to avoid a foreclosure as well. Often this helps to lenders to get most of their money, although they probably won't get all of it. However, they are often ready to go with this option if they need to.
- Option #4 - Mortgage Modification - Mortgage modification can be a help as well. If the lender will modify the terms, give you a lower interest rate, or tack on missed payments to the end of the loan, you may be able to avoid the foreclosure, which benefits the lender and the homeowner.
Foreclosure Property
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Foreclosure means losing your property to the bank for not being able to repay the mortgage or loans. Usually the banks prefer not to file for Notice of Default, but in order to protect their interests, the banks would do so and once the banks file for the notice, foreclosures will take place and the banks can auction off the properties once the proceedings are final. If you don’t pay, you don’t get to stay.
I can assure you that when someone bought the property initially, unless there was fraud, that the person hadn’t given a thought about foreclosure. Who wants to get into foreclosure? When you get into foreclosure, not only you have a bad credit but you will have bad reputation which makes it even more difficult to get another property using a mortgage or loans for a long period of time. No one wants their property to be foreclosed but there are a few people who might get into foreclosure for some of the following reasons.
The reasons are:
- Got fired from current job
- Can’t work due to medical and health problems
- Too much debt and mounting bill obligations
- Divorce with spouse
- Job transfer to another location
Foreclosures can bring profit or loses to investors depending on the condition of the foreclosure homes you want to buy. Generally it is quite easy to find a foreclosure property. You can try:
You can ask the agents who know about the properties on foreclosures and ask them if you can check out the properties offer and condition. We can now do a special search for these types of properties via the MLS.
This is the easiest way to find a foreclosure as all you need to do is drive around the neighborhood looking for signs like ‘Foreclosure’ or ‘Bank Owned’.
Banks generally put up the foreclosures online to notify investors about the existence of their foreclosure inventory.
- Asset Management Companies
- Government Agencies
- Auction Houses
- Internet Foreclosure Companies
There is a chance that you can get a cheaper price for the property in foreclosures if you approach the seller directly with an offer. There are companies like Realty Trac that sell names of people in pre-foreclosure. Through the MLS, we can get a list of short sales, which are pre-foreclosed homes. If you are an investor who is looking to buy a property before the foreclosures proceedings are final or before the redemption period is over, you might want to consider a few things before you approach the distressed seller.
For example, you might want to consider the point they are at in the proceedings- which is different for different states. There are some states that use mortgages. As such, the home owners can expect to stay in the property up to one year. Minnesota has one of the longest redemption periods. However, if the states are using trust deeds then the trustee sales will give about four months for the owner to vacate the property.
Most of the states have a certain period of time for redemption so it means that the seller has the right within certain period of time to pay all the foreclosure costs, interest and even the missed principal payments so that he or she can regain control of the property. You will need to consult a lawyer if you need more information about this as it can be complicated when you are trying to buy the foreclosures before the proceedings are final.
Remember that most of the states require the buyers to give the sellers certain disclosure about the equity purchases. If the buyer fails to provide those required notices or prepare the offers on the required paperwork can result in fines and lawsuits or even revocation of sale. Be sure to think through this before you proceed.
Last but not least, consider if you are the type of person with mercy or without mercy. Would you want the seller to have enough time to find another property before moving out or would you want to dump them on the streets on their own? This is important as this will determine what you would do if you are given such an opportunity to buy a foreclosure. This is why I personally would only buy a foreclosed property from a bank. I don’t want to prey on another person’s misery.
When you have consider everything you need to know and decide, you can approach the seller and make your offer.
What will happen when you have offered your proposal is that either the seller will accept, reject, or counter your offer. There are a few reasons that determine whether the seller will accept or reject your offer.
If the seller accepts:
- It means that the seller is desperate for a way out of the foreclosures.
- You will have a better chance to get a lower price in more desperate times.
If the seller rejects:
- Perhaps the seller would rather go into foreclosure than selling it to you.
- Then you might just move on to other property.
Most of the time, banks might consider to give discounts to those who are interested in buying the foreclosures. Generally, I am seeing a 10-20% discount. This is because, the banks do not want foreclosures to build up in their inventory of REO’s-the acronym for “real estate owned”. They want to get rid all the foreclosures if possible because if they keep them in the inventory, they are not earning anything but they have to pay for the maintenance such as utility bills. Often it is best to cut the losses and to get rid of the foreclosure property.
If they can get rid of the foreclosures, then at least they can get back their initial investment rather than continue to be on the losing side. You can check out the foreclosures available in your local areas with a Realtor and see if you can get a discount on a property that meets your criteria.
Sometimes, it might be difficult to get a discount but I can assure you the bankers would not hesitate to give discount if you are really qualified and committed to buying foreclosures. They really want to get rid of the mounting foreclosure inventory. If you’ll take the “good” with the “bad” you will get deals. However, you must make sure that the foreclosures would not be a loss on your side once you have purchased the property and make sure you negotiate to get the lowest price you can get. This is to protect yourself from any loses.
There are many foreclosures available so you can spend as long as you need to get one that is suitable for you without any hurry. If you miss a deal today, there will always be another deal tomorrow.
Real Estate Owned Properties for Sale
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If you have a mortgage and failed to repay the monthly payment, you are in the risk of getting a foreclosure. The lender, mainly the banks will file for Notice of Default and there is nothing you can do once the foreclosure is finalized. However, there are many ways you can avoid and stop a foreclosure from happening. You can find out more about this online or get a professional point of view in this matter.
When a foreclosure happens, the lender such as the banks will take over the properties involved in the foreclosure and try to sell it off at the foreclosure auctions. A foreclosure auction is going to take place to auction off the properties to the public. Before the auction take place, you will be able to see many advertisements whether in the newspapers, billboards and even online banking portals. Some of the legal paper are good places to look. In the Twin Cities area, you would want to look at Finance And Commerce as well as the St Paul Legal ledger.
However, most of the properties have no buyers as the price of purchasing the mortgage is much higher than the market price. Therefore people are not interested in the properties that are more expensive than the market price for similar properties. Why would you pay more for the same property? Unless of course, the banks are willing to reduce the price, and this is usually what happens. Since marketing a home for more than it’s worth will give the bank no chance of unloading the property. There is no way the banks can get people to buy the properties unless they make their property more attractive. In order to solicit an offer, banks often sell at slight discount to true market value-10-20% of a discount on such properties. Investors and the consumers do their homework. The internet and the data it provides is the great equalizer.
Real estate owned or “REO” describes one of the classifications for property owned by a lender. Normally the lender is a bank and the property becomes repossessed by the bank after an unsuccessful sale at a foreclosure auction. This is a normal process as most of the properties in the foreclosure sale are worth less than the amount supposedly owed to the bank.
Therefore people are unlikely to buy such properties and the properties end up in the bank’s inventory. The minimum bid for the foreclosure properties is the same as the total amount of the outstanding mortgage amount. As such, most people are not interested at all at the properties until after the sheriff’s sale- no matter how enticing or beautiful the property might be.
People are smart enough to check out the market value for the similar homes before they buy it to make sure that they are not on the losing side. However, some people might think that it might be profitable to buy a property that has been foreclosured. They might think that if they can get the property at the lowest price, they can sell it back at a higher price. While good in concept, it is unlikely to happen until the current inventory is absorbed and the market starts to march forward once again.
Recently we are seeing wholesale liquidation where numerous properties are disposed of at auction. So what happen when the foreclosure auction fails? The bank will try to sell the property on its own, meaning the bank will remove some of the liens and other expenses included before the property is up for sale in future auctions. The bank might offer the property directly to the public through a Realtor. This is possibly the best way for the banks to get the properties off their listing as the chances to get buyers would be higher and market conditions will dictate the final price.
Now, from a personal point of view, the truth about many of the properties that become REO’s is that most of the REO properties are in bad condition and are poorly maintenanced. You might get a REO property that has a missing door, bad or missing piping and even with broken windows as well as other things you might not want to know about. People in distress will take out their anger at the house and the bank that lent them the money so they could buy the house. These are perfect opportunities for someone with time and some cash to do the repairs. The more repairs required, generally the larger the discount. The types of “dirty dogs” are perfect for investors or real estate agents that can recognize the potential. Banks aren’t in the fix up business. They want to remove the property from their books and move on. You might want to look at these opportunities if they are selling at a low enough price to compensate you for the bad condition of the properties.
A Multiple Listing Service (MLS) is a group of private databases that contain the listing of properties represented by a real estate broker who is representing the seller to share information about the properties with other real estate brokers who represent the potential buyers. The purpose of the MLS establishment is to allow efficient distribution of information. When a real estate agent is introduced to a potential home buyer the agent is able to search the MLS system and get the information about all the homes available for sale in an area. Recently, our Northstar MLS in the Twin Cities Minnesota has created a search field specifically for foreclosed homes. This will allow you pinpoint this type of property more easily.
Why do banks want to get a Realtor to help sell off the properties in the banks inventory? If the banks have too many properties in the inventory, it will do the banks no good to hold inventory of homes-especially in a declining valuation market. If the banks get an agent to help sell off the properties, at least the chances of getting people to buy the properties would be higher, since most buyers use a real estate agent. The banks want to get rid of the properties not keep them. Banks are in the money lending business, not the real estate investment business.
Banks want to get back the money supposedly the previous owner owed them but if they can get at least half of it, they might not mind. In some cases that is better than waiting six more months and now only recovering a third. As long as they can get the money and the property off their listing, the banks would not mind to sell the properties at a lower price compared to the original pricing of the properties. The banks are getting many properties today. Yet, not many people are able to buy them because of the tight mortgage market.
When the real estate agents get the properties as a listing, they will try their best to find potential buyers so they can sell off the properties. Agents are often the bearers of the bad news, bringing in a low priced offer. The main point is to get the properties out of the banks listing inventory, as there are so many more properties being filed into foreclosure everyday. More and more people are having the problems to repay the monthly repayment for the mortgages. Eventually, things will stabilize. But, until then, the buyers have the upper hand.
Now, if you are one of those who want to buy a foreclosure property, it is very important to make sure that you know everything about foreclosure properties, the fees involved when you want to purchase, any hidden cost, additional cost and the total amount you will be paying in the end to get the property. Is it worth paying such a big cost to get a foreclosure property? It sure could be. On the other hand remember the latin phrase “Caveat Emptor”-Buyer Beware. You will have to think about it before you decide whether you want to buy or not.
Minneapolis: A Clean and Green City
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If there is one thing that Minneapolis should be famous for it is the city’s dedication to maintaining its reputation as among the greenest cities in the State of Minnesota. True enough, Minneapolis has proven it is hell-bent in protecting the environment through the Minneapolis GreenPrint which is its guide to attaining sustainable development.
The Minneapolis GreenPrint is a framework based on ten healthy environment indicators. An annual GreenPrint Report is submitted to the City Council to measure the environmental interventions being done by the city each year which can include street sweeping, installation of solar panels on city building roofs and other private sector initiatives.
The environmental efforts of Minneapolis go a long way considering that it is Minnesota State’s city and Hennepin County’s county seat. With St. Paul, it forms the now-famous Twin Cities, and has 3.2 million residents as of the last Census.
Employee relocation and corporate relocation usually targets Minneapolis due to its clean and healthy environment. With twenty lakes, creeks and lots of waterfalls, Minneapolis is a city that is abundant in water. It is thus no surprise that its name is taken from the Dakota word “mni” for water and polis for city, to mean water city. In fact, Minneapolis is also called the City of Lakes.
History and City Profile
The history of Minneapolis is largely tied to water primarily because of the city’s physical make up. Minneapolis lies on an aquifer and so the city is serious in managing its watershed areas.
Business in the city is mostly hinged on finance, trucking services, industry and health services. Several companies engage in milling, chemical and agricultural products, food processing and similar businesses. It is home to some of America’s Top Companies including Xcel Energy, Target Corporation, Ameriprise Financial and Thrivent Financial for Lutherans, Donaldson Company, PepsiAmericas and US Bancorp.
Minneapolis does not however just boast of a clean environment and good water sources but it also boasts of a holistic development that made it to the Kiplinger survey of Smart Places to Live in 2006 (it was ranked number 2 together with St. Paul). It has also been included in the list of Seven Cool Places for Young Professionals and was chosen as the United States’ Top Tech City survey by Popular Science in 1995.
The city, along with St. Paul’s $145.8 billion gross state product accounts for 63.8% of the State of Minnesota’s gross state product. The year 2000 was a bad year for the area as it experienced a recession but it has bounced back in 2005 with a growth in personal income by 3.8%.
Culture and the Arts
If you are thinking of relocating in an area where you can expose your family to culture and the arts then Minneapolis should be your best bet. Theater is big here starting with the Guthrie Theater which was designed by 2008 Pritzker Prize Winner Jean Nouvel.
Minneapolis is a haven for art and the artists. It has been ranked the most literate city in America and this can be one big reason for relocating in the area especially if you have children or you have a great interest in culture and the arts. It is home to the largest literary and book center in the country known as Open Book. It boasts of the Loft Literary Center which is a venue for contemporary and traditional arts and crafts.
If you are offering a relocation package for your employees then make sure you mention the existence of the Minneapolis Institute of the Arts, the city’s largest museum with over a hundred thousand collection of art and other historical items.
The most famous contribution of Minneapolis to the American music industry is Prince. This world-famous pop icon is a product of the Minneapolis Public Schools.
Sports
Minnesota relocation can become more exciting with the knowledge that sports means a lot to its residents. Among the teams that raised the flag of Minneapolis are the Minneapolis Millers (known for contributing 15 baseball players to the Baseball Hall of Fame), the Minneapolis Lakers basketball team (with six championships on its belt in all the three leagues) and the NWA Minneapolis Boxing & Wrestling Club (now known as the American Wrestling Association).
The Minnesota Vikings, the Minnesota Twins (won the 1987 and 1991 World Series), the Minnesota Lynx WNBA, the Minnesota Wild! hockey team and the National Lacrosse League team Minnesota Swarm are just some of the teams that make up the vibrant sports atmosphere of Minneapolis.
Employee relocation in Minneapolis is very appealing to those who have families considering the city’s well-designed park system, considered the best in America in terms of design, financing and maintenance. Residents of Minneapolis have to thanks Theodore Wirth for this.
Housing
There are a variety of Minneapolis relocation package and if you want to find out about this you can get the services of a relocation specialist who will be able to provide you with important relocation information to help you decide if moving to Minneapolis is indeed the right decision.
Minneapolis real estate can offer you lots possibilities and you can choose from any of the real estate listings in the city including single family residences, single story homes, condominiums, duplex, or lakeshore properties. You can even purchase or mortgage land and build your own house. However, it would also be ideal to look at the latest foreclosure listings as they may be new homes on the list that are quite affordable.
Still unsure about moving to Minneapolis? Think of how clean the air you are going to breathe once your family relocates in the city. Think of the artistic and cultural exposure your family is going to get. Think of how important quality of life is and think of Minneapolis.
St. Paul: A Capital Center for the Arts
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St. Paul is famous not only for being the other half of the Twin Cities (the other part being Minneapolis) but also for being America’s most livable city. The city will however be placed in the world map once it hosts the Republican National Convention in September 2008.
Politics aside, St, Paul aims to make life and the environment better for its residents through the promotion of commuting alternatives in the city specifically the Freewheelin bike sharing program during the convention where a thousand bikes will be lent to program participants, 75 of which will be left to the city after the event.
More popularly known as the capital of the State of Minnesota, St. Paul is Minnesota’s most densely populated county. Together with Minneapolis, it is the 15th largest area in the United States with 3.5 million residents as of the last Census.
History
St. Paul used to be a tavern that developed into a trading outpost known as Pig’s Eye in honor of Pierre Parrant, the man who started it all. Parrant was blind in one eye. As the city became the melting pot of European explorers, American soldiers and Native Americans, it ultimately became Minnesota’s transportation and trading center until it became a city in 1858.
City and Community Profile
St. Paulites live in a city that is further divided into 17 City Districts including Saint Anthony Park, Merriam Park, Highland Park, Battle Creek, Como Park, Dayton's Bluff, Downtown, Greater East Side, Macalester-Groveland, North End, Payne-Phalen, Summit Hill, Summit-University, Hamline-Midway Thomas-Dale, West Seventh and West Side.
St. Paul has a population of 287,151 people consisting of 112, 109 households. The city is home to 115,713 housing units occupied by 60,987 families. Majority or 67.02% of the residents of the city are Whites followed by Asian (12.36%), African Americans (11.71%), Native Americans (1.13%) and the rest are Pacific Islanders and those from other races. St. Paul is home the Mexican population, the reason why a Mexican consulate has been established in the area.
St. Paul has a young population with an average age of 31 years. The elderly or those aged 65 years and over make up only 10.3% of the total population while those under 18 years of age make up 27.1% of the total population.
Business
As part of the Twin Cities, St. Paul is an ideal site for business and this is evident with the number of major corporations that have made the city their home including St. Jude Medical, Minnesota Life, Lawson Software, Travelers, 3M and Gander Mountain.
City Attractions
St. Paul is an exciting destination for those who seek entertainment and those planning to relocate in the city will get their share of fun and excitement. One of the attractions here, which was born out of a criticism the city got from a New York reporter who compared the city to Siberia during winter is the Saint Paul Winter Carnival. Minnesota Lake is a fitting icon for the Winter Festival considering that the ice formations in the lake were the source of the Festival ice castle. Among the Festival attractions include ice horse racing and bobsledding. Another attraction is the appearance of the Royal Family during the festival.
The St. Paul historic Landmark Center in Rice Park also serves as a time capsule and a memorial to that time when the building served as a post office and Federal Court House. The pink granite building with that red tile roof is now an arts and culture and an information center. Infamous people like Baby Face Nelson and John Dillinger were tried in the same building when it was still used as a court house.
The Wabasha Street Caves is another historical site having been home to mobsters before it was converted into a venue for band music. Nothing however beats the 12-day Minnesota State Fair, known as United State’s largest state fair when it comes to the average attendance on a daily basis. If you want the best of Minnesota livestock, cooking and art then go to the fair.
Famous Citizens
St. Paul is the birthplace and resident of many famous people including world-famous author F. Scott Fitzgerald (who was born here), Peanuts creator Charles M. Schultz (who was born in Minneapolis but was a resident of St. Paul from infancy), journalist and Civil rights activist Roy Wilkins (who grew here), playwright August Wilson (who lived here from 1978 to 1990), photographer John Vachon and painter LeRoy Neiman.
Housing
Most executive relocation and corporate relocation package focus on St. Paul because of the many housing opportunities in the city. You can choose to invest in real estate properties like condominiums, apartments, house for sale or get a good real estate agent to look among the mortgaged houses facing foreclosure proceedings for a good buy. You can also avail of the Minnesota Housing Mortgage Loan Programs targeted towards first time Minnesota home buyers or those with moderate incomes. To be eligible for the Minnesota Housing First-Time Home Buyer Loan make sure you are a first time home buyer, you have acceptable credit and that you meet the requirements for income limits and the home cost limits.
It is easy to get a housing mortgage in St. Paul and you can get some help from reputed real estate agents who will assist you in finding the best mortgage deals in town. A good relocation package in one of the best cities in Minnesota like St. Paul is more than enough incentive for any employee who is being offered an employee relocation option. Living in St. Paul can be a mixture of the urban and laidback lifestyle because while the city is the center of trade and commerce as part f the Twin Cities, the local government has also managed to maintain the city’s environs quiet and favourable to building families.
Edina: Stellar Schools, Stellar Hockey
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Edina is a first-ring suburban city in Hennepin County, State of Minnesota which started out as a farming and milling community back in the 1860s but has now developed into a metropolitan community. Most of the original residents of Edina were Scottish and Irish immigrants and some have remained to see their city grow into a community that offers one of the best living conditions for its residents. With 39 parks, high quality medical and educational facilities and regional shopping areas, Edina has indeed become a city to watch out for.
History
Edina used to be part of the City of Richfield in Minnesota in the 1850s after the original 17 family settlers migrated to the Richfield Village due to Ireland’s potato famine. The English and Scottish farmers followed and established a community along the Minnehaha Creek. Edina was born after the residents decided to separate from Richfield Village in 1888 and establish a new village. Among the names that were floated around include Westfield and Hennepin Park but it was Edina which was chosen by the villagers.
If you take a look at Edina’s street names, you would notice that most of them are the names of the families who once occupied Edina among them Code Avenue, Grimes Avenue, Cooper Avenue and Gleason road.
Community Profile
Being a resident of one of Minnesota’s ritziest cities can have its price but no one is complaining since majority of Edina’s residents are considered rich, with the average household income amounting to $66,019 in 1999 compared to the $37,974 average household income of Minneapolis. The city’s per capita income amounts to $44,195 while the average income for every family amounts to $93,496. Poverty is rare in Edina with only 2% of the total number of families and only 3.3% of the total population living below the poverty line.
Edina has a total population of 47,425 people as of the 2000 Census. A total of 12,870 families live in the city’s 21,669 housing units. Majority of the residents are Whites (94.28%) followed by Asians (2.99%), African Americans (1.15%) and the rest are native Americans, Pacific Islanders and those from other races. The city’s population has an average age of 44 years, with 22.9% below the age of 18 and 22.7% were 65 years or older.
The high quality of life in Edina is evident with the vehicle ownership statistics in the city. A total of 81% or 18,269 of Edina’s workforce drove a car alone when going to work while only 3% or 711 used the bus and 7% or 1,469 carpooled. A small percentage of the workforce uses the taxi, motorcycle and bicycle when going to work.
Business
Money is circulating in Edina and if you are planning on corporate relocation or employee relocation or just plain vacation then you would not be disappointed with Edina’s commercial establishments. This is shopper’s destination and if you happen to pass by here do not miss Southdale Center, a fully-enclosed. Climate-controlled shopping mall considered a first in the United States. Other shopping centers include the Centennial Lakes Plaza, Yorktown, Galleria and 50th & France which Edina shares with Minneapolis.
Alcoholic drinks are controlled in Edina and these items are sold only in municipal liquor stores in Southdale, Vermon & Interlachen Blvd and 50th & France. Nowhere else can you find this commodity in Edina. Despite its commercial success, there is only one hotel in Edina and this is the Residence Inn by Marriott. The 225-room, 6-suites and 79-Condominium Westin Edina Galleria Hotel & Residences is still under construction and is expected to be completed by 2008.
Housing
Most houses and condominiums in Edina use utility gas (94%) while only a few use electricity (5%) and fuel oil or kerosene (1%) as their heating fuel. Apartments are however a different story as only 66% of the dwellers use utility gas, 28% use electricity and the rest use fuel, kerosene, bottled, tank or LP gas.
One of the set-offs when living in a rich city like Edina is the ever increasing cost of living particularly the sky-rocketing housing costs. The average price of houses for sale in Edina has increased by $185,000 from only $215,000 in 1997 to $400,000 in 2004. It is thus a good idea to invest in real estate properties in Edina now before real estate prices sky rocket in the future.
Corporate relocation is becoming a trend because of the increasing number of ordinary people being displaced in Edina due to a wide disparity between their incomes and the cost of housing. If you belong to the high-income bracket employees and your company offers you a relocation package in Edina which includes a condominium, duplex or a new home then make sure you know about the real state of real estate in Edina by consulting a real estate agent.
To solve the growing disparity problem, the Edina Affordable Housing Taskforce has released a set of recommendations for affordable housing in Edina. The community has participated in the consultation and the results of the study will be used to jumpstart a plan for affordable housing in the community.
Despite the growing concern for expensive housing in Edina and a median rent rate of $654, the city only has a 5% vacancy rate. Majority of the 29,669 housing units or 76% 916,072) are occupied by the owners.
Famous Citizens
Edina is a rich city and it is not surprising that not a few billionaires have made the city their home. Among them are Best Buy founder and chairman Richard M. Schulze (who is a present resident) and Minnesota Twins baseball franchise owner Carl Pohlad. Schulze is No. 102 in Forbes’ List of 400 wealthiest Americans in 2007 while Pohlad is No. 107 in the Forbes List of the United State’s richest persons in 1992.
Famous singer and song writer John Denver lives in Edina with his first wife Ann Martell from 1968 top 1971. Professional Tennis player Mardy Fish, professional Wrestler Ric Flair and Author Vince Flynn are also from Edina. Professional golfer Hilary Lunke (who won the US Women’s Open in 2003) and Ice Hockey Player Bill Nyrop (who won three National Hockey League Stanley Cup Championships) are also from Edina.
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