How to Use Google Earth for Real Estate

Visiting properties has never been easier thanks to Google Earth.
Now all real estate investors have to do is click a mouse and a clear image of the property pops up on their computer screen.

Google describes it as "a globe that sits inside your computer."

Now you can type in any address and in most instances, get a view that's so good it's almost alarming. So instead of driving to the property you can look at it from the safety and convenience of your computer without the hassle, expense and time waste.

You can also look up road maps, crime statistics and get historic maps.

Talk about detail- a recent scan my own home revealed one of our cars parked in the driveway. I would even see my front door quite clearly.

This is a tool which has the potential to turn due diligence upside down. In fact, average users are reporting that although Google Earth does require quite a bit of RAM, it doesn't have the learning curve you'd expect. Most people are able to use it quickly, within five minutes or so. That's good news for investors who are not computer geeks.

All you have to do to gleam a fantastic close-up image of a property is to click on Fly To. Type in the address and hit the small magnifying glass on the right. Instantly you are carried from orbit all the way to the property's roof.

In fact, if you play with it a little you can adjust the views not only from the top but also from the sides as you pan out and in.

Not only can you see all the surrounding terrain, but you can move around the property and view it from different angles. Warning: Google Earth can be addictive and fun.

You may find yourself wandering the globe looking for interesting maps, places and people who happen to show up on the Google camera.

If that wasn't enough, Google has just acquired Image America which is already well known for selling low cost imagery to county appraisers and assessors. Images will be clearer than ever which is even better news for real estate investors.

That's because they use aerial imagery which is superior to satellite imaging since it can be done in near- real time acquisition. That means it's faster than the satellites which are located 17,000 miles above the earth. And it's more efficient that google's photographs taken from airplanes.

One of the biggest obstacles for an otherwise fantastic software would have been avoided; some blurry images.

Nothing is more irritating than to type in an address and get an image back that's so fuzzy your eyes strain. In the past, this failure has been explained away as perhaps cloudiness in the atmosphere.

Bad images don't come up often, but if it's that one property you really want to see, it can get maddening. Generally, however, most of the larger cities and towns have very good close-ups.

Google Earth definitely solves one of the biggest problems real estate investors have had in the past. Seeing properties up close. When you are located in another state or country this important tool helps make your due diligence a breeze.

To download Google Earth go to

http://google.earth-free.org

Recommended Google Earth Resources:

http://www.gearthblog.com

http://www.gearthhacks.com/

http://googleearthuser.blogspot.com/

For a quick start manual on how to use it go to

http://www.gearthblog.com/basics.html

By: Alice Stevens
Credit:www.superfeature.com

How to Choose Good Miami Condos

Miami is the largest city in the metropolitan area of Southern Florida. Miami is also considered to be a world city because of the high cultural and financial importance that this city has. Moreover, the largest and the most influential port in the United States is found in Miami and there are few cities in this world that benefit of such incredible views and surroundings like Miami does.

Considering this, you can only imagine why in the last years there has been a building frenzy in Miami. The number of people who decided they must see the amazing views of Miami when they wake up in the morning was so high that more and more condo buildings started.

Now, because the offer for Miami condos or luxury Miami condos is so high, you must be very careful how you choose your condo when you decide to move to Miami. There are a few important things that one has to consider when making this investment.

First of all, do not be fooled by any pompous name and do not settle for the best view ever without looking into some other important facts related to luxury Miami condos. So you like the name and you love the view, and the interior of the condo, and the services that you are offered are to your liking, but should it stop here? No!

One of the most important parts that you have to pay a lot of attention to when deciding that Miami condos are what you want is the financial health of the luxury Miami condos association. Slack maintenance is almost always a sure indicator of financial trouble. This may mean that the fees you have to pay are much higher than for other Miami condos and this also means that you might have some trouble later when wanting to sell the propriety.

To avoid all this trouble and make sure that the investment you make is safe, once you have chosen the luxury Miami condos building of your choice, it would be wise to follow a few steps that might save you from a headache later on. Ask the association for a copy of their last financial statement, check the covenants, rules and restrictions to make sure that they are to your liking, learn as much as you can about the condos association and last but not least try to find out what is the owner- tenant ratio. After you have checked all this must do’s on your list and the results are satisfying, then you can purchase that Miami condo that you were looking into.

If you want to enjoy your condo and make the best of your investment, it is not enough to settle for a nice view and tasteful furniture. However, if you follow these few steps, then you can surely enjoy your luxury Miami condo and be sure that you have made the right choice. The number of condominiums that you can choose from in Miami is vast and this is why you need a little guidance along the way.

By: Groshan Fabiola
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How To Get The Best Home Loan Deal

With booming real estate markets, greater lending competition and high consumer confidence, there has never been a better time to purchase your dream home and, by doing your homework before taking on a mortgage, you can get a better value investment for your dollar.

There are a few secrets and simple tips buyers should know before shopping for a home loan mortgage. The first, and most important of these, is to do your homework. Home loans vary greatly and it's important you find the one that best suits your situation.

With the rapid growth of online private investors, even people who the banks and major mortgage lenders won't deal with can usually qualify for a home loan.

Potential purchasers should study their local real estate market to get a feel for what suburbs offer the best value and investment return potential, they type of property you are seeking, and how long you plan to live there for.

Once you have a good idea of the property you are seeking and its price, work out your budget, list all your assets, and decide how much you can afford in repayments.

If you qualify for a loan from a bank or major mortgage lender, it is usually best to approach them for a loan, and don't be afraid to negotiate on their establishment fees and interest rate. After all, there is plenty of competition and they want your business!

If you don't fit into this category, you can still apply for a loan from an online private investment group who will lend on the basis of no credit checks, no income or employment verification, no tax returns, and no prepayment penalty.

The difference between the major lenders and these investor groups is that the former lend not only against the value of the property, but who is acquiring it based on income etc., whereas the latter are only interested in the value of the property.

You need to check the fees for private investor loans as they are usually slightly higher than conventional loans, but they give people the opportunity to buy their own home when otherwise they would be stuck in the rental cycle.

There are some type of homes, such as mobile homes, homes on stilts, or other unusual structures which may be rejected because their value may be an unknown quantity should the borrower default and the property has to be sold.

Lenders are more willing to provide money for home loans than any other type of loan because they know purchasers will always meet their mortgage repayments ahead of other payments, to protect their asset and keep a secure roof over their family's head.

This makes it easy for almost anyone to get a home loan, but always remember the repayments have to be met, so don't borrow more than you can handle. It's a good idea to always keep your payments one or two months ahead so if anything does go wrong you have some breathing space.

So, by doing a little extra homework at the beginning, you should end up with your dream home and a reasonable mortgage that let's you sleep easily at night!

By: Helen Bassett
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How To Find Good Real Estate Broker

The value of hiring a real estate broker lies in the fact that they can assist you in the process of either buying or selling a house. A good broker would know how to get proper financing, prepare your home for inspection and help you until the closing date. Just make sure your broker represents your best interest as there are brokers who represent both the buyer and seller in a transaction.

The best sources of information on where to find a good real estate broker are your friends and family who recently bought or sold a home. Ask them to refer you to a broker who is easy to contact. A good indication of a dedicated broker is the one who returns your calls immediately. Do steer away from those who can’t seem to find the time to call you back, no matter how good their referrals are. Other sources of information are newspaper ads and the internet. Try to visit open houses in your neighborhoods, as this is also a converging place for agents and brokers.

Before establishing any formal business relationship, determine just how much your broker asks for commission. This is important as some brokers ask for fees when handling closing documents, apart from the agreed commission.

Always make sure that the broker’s personality fits your own, as you’ll expect to spend a lot of time with him during the whole buying or selling process. If you can establish faith and trust with your broker, then you know you have found a good one. A good broker should also make you feel important and treat your transaction as urgent. Logically, a full-time broker or agent is much preferable to one who just works part-time.

Scrutinize the training your broker had and whether he’s familiar with current trends, especially in using the internet. A technology-savvy broker indicates the willingness to stay on top of his profession.

If you are selling, determine how your broker will market your house and ask for written marketing plan. See to it that your broker will get your property featured in several listings. Also, ask your broker if he’s willing to offer a commission to the buyer’s agent, as there are buyer’s agent who only deal with seller’s agent willing to give them a commission. Needless to say, this would facilitate your transaction.

Avoid brokers who ask you to sign exclusivity contract for several months. This is only beneficial if manage to find a dedicated broker. The downside, of course, is when you find a broker who gives less-than-respectable performance. Try to ensure that you protect your interests at all times.
Lastly, never ever give your broker money up front. These professionals earn when your property gets sold, and not a minute less. When a broker tries to ask for any remuneration before any work gets done, it’s time for you to seek another one.

By: arpitgosai
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How To Achieve a Quick Property Sale in 2007

Sell your Property Quickly in 2007

You know how it is. You have just found the home you were looking for and the sellers have accepted your offer. Now you've got to sell your current home, a goal that won't be hard to achieve according to your estate agent. Your property gets put onto the market and there's quite a bit of interest from potential buyers within the following days. Soon it all quiets down. Weeks pass by, then months and still you are no closer to selling your home than when you first started. An even worse situation, your buyer gets out right before the closing is set to take place.

Choosing to sell your home through a real estate agent may be an extremely long process. The fees are also outrageous, especially after you factor in the fees from the real estate agent as well as the extra house payments and legal fees you will be paying while waiting for your house to sell. Then if you don't get a fast property sale you run the chance of losing the home you want too. Given these rough circumstances, it's no wonder that relocating is looked at as one of life's most stressful events.

Basically, there are two alternatives to selling through a realtor. One is to sell over the internet. The other is using a company that buys homes direct. Such agencies can be found advertising their cash property buyer offers on the internet. There are disadvantages and advantages associated with each one of these methods.

Hundreds of people sell their property in the UK every month privately. You save on real estate costs, which could be up to 3%, and you control the deal. And you won't have to get a Home Information Pack from the Government when they become mandatory in the summer of 2007 (due to the fact that private sales are exempt). There are some disadvantages that need to be thought about. If you choose to advertise online, and need to sell a house quickly, you'll need to devote lots of time to advertise the property. You'll need to register on multiple private sale websites, to increase your chances, write-up a description of the property and upload it to the sites along with suitable resized photos. Next you will be dealing with all of the interest directly and also spend a lot of time drafting answers to help sell the property. You're also still at risk of not being able to find a buyer very quickly or the risk of broken chains and buyers getting out at the last minute.

The next private sale option is finding companies who work with providing quick property sales services. You will receive an offer from them, usually a day or two following, and the sale takes far less time to finish than average. It doesn't matter what condition the home is in, and you won't be wasting time trying to 'sell' the home to the buyer either.

You should be prepared to take a below market value offer on your property. These companies, in return for a fast house sale, purchase at discounts of between 10% and 20%. As long as you are willing to make a concession on price, you will have a quick sale and, most importantly, one that is stress-free.

By: APP Manager
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How to use pre-foreclosure lists to your best interest

You don’t need to be deeply involved in the real estate business to be aware of the importance of pre-foreclosure lists. The tricky part is how someone can use them to the best interest to purchase bargain pre-foreclosure homes, which fetch substantial profits at re-sale.

Finding pre-foreclosure lists is quite easy; finding the right pre-foreclosure lists however can turn out to be a tough mission. So, how can we be sure that a list is right or not? Look for certain clues. You can rest assured that the right pre-foreclosure lists are not available for free. Any such lucrative free listings provide outdated information and most of the times, they have hidden costs attached. In other words, they make you waste time and money.

The best way to start with is a trial membership with one or several pre-foreclosure lists service providers and evaluate their potential. After the trial period, you become a contributor member only if you are completely happy with their pre-foreclosure lists and pre-foreclosure homes opportunities they put forward. Usually, reliable pre-foreclosure lists are offered by online service providers, like foreclosureconnections.com. These professional organizations are specialized in pre-foreclosure homes and grant you the necessary support and backup when it comes to getting the best possible deal.

A pertinent pre-foreclosure list with no hidden costs attached must be comprehensive and detailed. Wide-ranging information related to pre-foreclosure homes should stipulate the total space of the home, the number of bedrooms and baths, the existence of a front garden, a backyard, a garage, central heating system and other relative details. Also, pictures of pre-foreclosure homes available online can help buyer choose the right place and decide quicker. The price goes without saying as it is an essential attribute in everyone’s choice.

Such detailed pre-foreclosure lists are a valuable help for the potential buyers. Thanks to them, time and money consuming activities can be avoided. For instance, you don’t have to go into the field to assess thousands of pre-foreclosure homes. After a thorough research through most of the foreclosures available on the market, you can make a shorter list comprising the pre-foreclosure homes that might be of interest for you. Then, it is much easier to inspect only, let’s say, twenty properties instead of two hundred to find the one that best suits your criteria.

Quality online pre-foreclosure lists like the ones at ForeclosureConnections.com have another salient point: they are updated on a daily basis by industry professionals so that you can get the latest and accurate information. These pre-foreclosure lists are compiled by top-notch industry professionals and real estate veterans who have a wealth of knowledge of the industry. These professionals search through hundreds of different sources to collate the latest or update the listings regarding the different types of pre-foreclosure homes.

By: Rick Martin
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How To Use Equity to Your Advantage

Once you have purchased a home and are making monthly payments, you are in the process of building equity. The opportunity to use the equity you have built up in your home is one of the benefits of homeownership.

The equity you have built up can be used for many purposes on your advantage. Many people will use this equity to draw out cash by refinancing their house; the cash may be use to finance other major purchases such as second mortgage, making major improvement to your property or to fund their children educational expenses.

If you are in bad debt situation, your equity can be the hero in saving you from bankruptcy. You can pledge your equity to apply for a home equity loan which will allow you to borrow a relatively large amount of money to consolidate your debts. As compare to other personal or unsecured loan, a home equity loan is easier to get approve even you are in a bad debts situation; lenders may be more liberal because they view home equity loan as relatively safe. You can't disappear with your house or hide it if you default on your loan, so the lender has a good chance of collecting the collateral.

Besides using your equity for bad debt consolidation, you may use it for other high-interest rates debt consolidation. One of the advantages of home equity loans are they typically have lower interest. And you could you this advantage to consolidate all your high-interest monthly payments into a single loan which had a considerably lower interest rate.

Typically you are allowed to refinance up to 75%, (sometimes 80%), of the value of the property on conforming loans whereas on jumbo loans you are limited to 70% of the property's value. For example, if your home is now valued at $150,000 and your loan balance is $70,000, you might be able to get a new $150,000 x 75% = 112,500 mortgage. That would allow you to repay the existing $70,000 balance and use the $42,500 for your financial needs.

Another possibility to use the equity to your advantage is home equity lines. Many lenders offers home equity lines for homeowners and allow them to draw cash advances with their credit card or write checks up to certain credit limit.

Before using a home equity loan or home equity credit line for any purpose, you should be aware of the pitfalls of these loans. The main thing is that you can lose your home if you fail to meet the payment schedule required by the loan. Therefore you need to consider it carefully before do a cash-out with your equity.

By: Cornie Herring
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How to track-down pre-foreclosure sales

If you want to invest in pre-foreclosed properties, then you need reliable pre-foreclosure listings. Get them and a simple pre-foreclosure sale can be your chance to make the deal of a life time.

In real estate business everyone wants to make a healthy profit. Either individuals looking to buy a house with a dire budget, or bargain house hunters, all buyer s’ goal is to spend as little as possible. The major problem is that many people simply don’t know how or where to actually find those hard to pin down investments. It can be really difficult to come across unusually good deals when buying on the open market. If you’re really looking for savings that will create lots of initial reserves and maximum potential investment value, then you have to consider a pre-foreclosure sale as your best option.

Pre-foreclosure sales can turn into bargain deals on great homes, which can sometimes provide savings of as much as 50% off your initial purchase. How can this happen? Easily, providing it is dome correctly. A pre-foreclosure sale entails the direct contact between the homeowner, sometimes the lender, and the buyer, and that is a win-win situation. On one hand, the homeowners win because they make a pre-foreclosure sale, get the money and pay back the loan, so they are no longer in default; on the other hand, the buyer is also a winner, purchasing the property at a substantial discount and under a flexible sales agreement, depending on one’s negotiating abilities.

As a rule, the first step in every business is the most important and the most difficult, at the same time. When buying pre-foreclosures, the most important step is to get your hands on at a pre-foreclosure listing. Not just any listing, but a reliable, comprehensive and frequently updated pre-foreclosure listing. You don’t find these sorts of listings every day, still there are various medium that offer related information, namely local newspaper, lenders, and online services.

Local newspapers carry classifieds, which are informative but they are not updated on a daily basis and they provide information only for the local market. Lenders or banks can also be a source of information, provided you are lucky and get through the right officials willing to help you with a pre-foreclosure listing; otherwise, it is a waste of time.

Probate and divorce lawyers can also come up with long lists of homeowners willing to sell their houses very fast. It may sound awkward for some of us, but this is a daily reality. And if you have any moral issues, that you take advantage from someone else’s misfortune, think of it this way: they need to sell immediately and you offer to help them. You give them the money and they get rid of another major problem. These unofficial pre-foreclosure listings can lead to pre-foreclosure sales even before the properties hit the market.

Last but not the least, the internet proves to be a resourceful location when it comes to pre-foreclosure listings. There are many websites that will make lucrative offers like free listings, which are alluring for many people. What people don’t realize is that, most of the times, free listings are outdated and have hidden costs attached. So, the best option is to find a detailed, comprehensive and daily updated pre-foreclosure listing with no hidden costs attached, that can be efficiently and successfully used. A good start point is foreclosureconnections.com, a reliable foreclosure listings online service, where you can also peruse for valuable pre-foreclosure sale tips.

By: Rick Martin
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How to Profit from a Niche Real Estate Market

There are many real estate investors who have been successful following a proven business plan that starts with the purchase of a targeted property, followed by whatever up-dating, renovation, or rehab is necessary, in order to quickly market and re-sell the property at a nice profit. Experienced investors sell tickets to seminars across the country, inviting others to share in the wealth and potential in various real estate strategies. These people are not my audience, although I wish them continued success. My proposition is one that is often overlooked, in a particular market that offers a mutually beneficial upside and potential, if the investor has the patience to accept a longer time period for return on the initial investment, and some desire to participate in community building.

Real estate can still be purchased in rural and depressed markets at bargain basement prices. I have purchased homes for as little as $10,000 cash, and marketed them myself in small communities in Texas at a good profit in a relatively short amount of time. After a personal inspection of the property and some research into the housing market of the community, a title search is the only other due diligence needed.

Rather than performing any rehab, or as little as possible to make it livable, the house is immediately marketed “as is,” with owner financing. A “For Sale By Owner” sign, some flyers posted around town, and an ad in the local paper usually provide plenty of potential purchasers. Most of the homes I have marketed were solid bargains in the 29-40k range, and most buyers, even those with less than perfect credit scores, were able to acquire at least the 10% minimum down payment requirement, as well as required insurance. After a credit check, the buyer and seller execute a Deed of Trust Mortgage and insurance binder, and the property is exchanged. It really is that simple.

After closing, the investor retains the down payment, a vendor’s lien on the property, and a 10, 12 or 15- year mortgage at 14.25% interest. After this, one of two things will happen. Either the buyer will pay his mortgage faithfully, which, over time, will transform the mortgage paper into a valuable financial instrument, or, in the worst case, the buyer defaults, and the property is foreclosed and resold.

Generally, the investor can expect at 25% rate of default, but with careful buying, and setting the term so that the monthly payment is comparable to area rentals, it is easy to find a qualified buyer who is willing to commit to the purchase with a significant down payment, reducing the chance of foreclosure. Finally, after a payment history is established, sometimes in as little as three months, the mortgage is marketed and sold, and the investor’s cash and profit are returned in a relatively short period of time, with minimal time spent on unneeded major improvements to the property.

Perhaps most real estate investors aren’t aware of the size and potential of this market, or of the families whose lives are changed when they find their own version of the American Dream with the purchase of their first home. In my experience, this market has been, unfortunately, passed over and undervalued, and although I may never completely need (or want) to understand and maintain the business side of this plan, I am proud to attest to the positive difference that homeowners make in small communities where modestly priced homes are rarely offered, or traditional financing is unavailable or denied to potential buyers. This is the real niche in real estate for me. Both sides win.

By: Nancy Drew
Credit:www.superfeature.com

How to Make it in Commercial Real Estate

Quite often, when people begin to invest in commercial real estate, they begin small. They may acquire a single family dwelling, a duplex or maybe even a small apartment building. In order to keep continue the commercial real estate investment game; you have to keep moving property. While buying and selling like kind property has the potential to bring you profitable gains and tax free exchanges under the IRS 1031 real property exchange tax laws, at some point you will want to expand. In fact, if you do not grow, you will eventually find that your bank can no longer help you either because you have maxed out your single family mortgages or your investment portfolio has extended beyond their lending parameters. Congratulations, you have just outgrown your residential lending company. It is now time to move on over to the commercial property side of your bank.

Strategies and Practices
Sun Tzu, author of "The Art of War," said, By taking into account the unfavorable factors, he may avoid possible disasters." When considering commercial investment, you must consider anything that could possibly go wrong. This simple proactive measure can save you considerable amounts of money in the long run. Ethical standards and sound business practices should be upheld not only to prevent legal action being brought against you and your company, but to increase your legitimacy in the industry and community. When you engage in adhering to ethical standards on all counts, you will be respected and you will be trusted. This reputation can prove invaluable when you decide to purchase more property, particularly in an area where you have already firmly established yourself as an ethical business person.

You should also have a "do what you say and say what you mean" mentality. In other words, don't say things that you don't mean and if you say something, mean it. Follow though on your promises and commitments. Establish yourself as reliable, dependable and trustworthy. While this is crucial in any business practice, it is exceptionally vital in the real estate investment business because a large part of your business, sales and acquisitions, relies on networking. Your standing in your industry and your business can go a long way in facilitating your investment practices - and your success.

Sales Strategies
Your sales strategies are crucial to the success of your investments. You should know your market inside and out, watch the rises and falls of values and take note of what drives a property's value up and what can drag it down. You should also be extremely knowledgeable in the area in which you are investing. In other words, know the ins and outs of commercial real estate investing. If you invest in apartment buildings, know everything there is to know about the properties, how to improve them, maintain them and move them.

Additionally, you should take time to know the community where you are investing in the property. Is the property near a university? It is in an economically depressed area? Is it in an area that is experiencing growth? What is the forecast for property values over the next few years? Is the property located near something that could potentially drive down its value? Drive it up? Do your homework and know the area inside and out. This will also help you if you decide to invest in additional property in the same area. Win win situations are always a good deal, of course. If everyone can come out ahead, all the better.

Watch the market for various trends and stay on top of them. The real estate market is constantly changing so when you notice a trend, move fast. Finally, know how to market your deal. If you do not know what you are doing you will most likely make bad investment decisions and you are very likely to lose money. It all goes back to knowing your investment area and knowing what you are doing.

The Business Side of It
Managing the business side of it all is extremely important to making money. Not knowing what you are doing on the business end of the equation. Some areas of business management that you should pay close attention to are:

* Organization - Organization is vital to running your business in an efficient manner. You must be organized or you will lose valuable time and money because phone calls will not be returned, appointments will be arrived at late and credibility will be lost. The last thing that you want is to be labeled the "absent minded professor."

* Time Management - If you can not manage your time you will likely be unable to manage anything else. Set aside a certain time or times during the day for various things such as email, returning calls, pursuing contacts and tending to the business portion of your company. Set a schedule and do not stray from it.

* Financing and Budget - Set a budget and stick to it. You need to maintain your budget and stay on top of your financing. This is one area where super organization is vital. This is what drives your business and if you lose money you business will suffer.

* Team Development - Create strong, effective teams and constantly work to develop them. This will be your support system when you are in the throes of an investment venture.

Making the Deal
This is the nuts and bolts of the commercial property investment process. Select your properties, seek out great deals and develop property that turns a buck. You should identify your investment strategy and seek out properties that fit specific criteria that you develop. You can find properties by appointing others to locate the properties for you, use local press and marketing principles to find hot spots and even employ the assistance of a broker. With some know how and a lot of work, you can be successful in commercial real estate investing.

Investing in commercial real property relies in a variety of factors in order for it to be a success. Ethical practices, sales strategies, sound business practices and knowing how to make the deal all work to create an investment sales and acquisition success story.

By: Tony Seruga, Yolanda Seruga and Yolanda Bishop
Credit:www.superfeature.com

How To Get Commercial Real Estate Investment Money

With the commercial property market booming across much of the western world, and emerging economies providing many investment opportunities, there has never been a better time to invest in commercial property.

The biggest single challenge facing developers with potential commercial projects is actually getting them funded.

However, with growing competition in the finance industry, relaxation of lending rules, and coffers full of money to lend, raising the funds for large scale investment projects can be simple and fast – as long as those seeking to raise the funds know how to go about it properly. The first place to start looking is the Internet. Increasingly, deals are being done online - and done fast – as long as you understand the project financing process.

Increasingly, investor pools are prepared to underwrite commercial property ventures – worth many hundreds of millions of dollars - with no credit checks, no complicated documentation, and no income verification. A commercial transaction is defined as one involving a commercial project which includes real estate as its foundation. Typically, there are two ways in which loans are made available:

The first is known as a “conforming” loan, when full documentation with limited concern for credit is required, while the second is “non-conforming” where there is no documentation required, no credit checks, and no income verification. The Loan-to-Value (LTV) aspect of all commercial transactions is one of the major considerations when providing finance. With non-conforming loans, typically up to 90% of the value of the project can be borrowed, depending on the project type. For example, non-conforming reacquisition transactions require a maximum of 50% LTV for consideration. Conforming commercial transactions offer considerable extended options. Any LTV, regardless of transaction type, purchase or refinance, is usually considered, but the following are also taken into account:

Conforming transactions approvals rely heavily on what cash an applicant has vested in a submitted project. Substitutes for cash include either collateral or a winning pro forma, but not less. Equity in real estate is not generally considered a viable substitute. Regardless of what an applicant might choose to substitute cash with, in order to justify an approval, no substitute can ever be effective without a project that makes sense.

A winning pro forma, if truly winning, can easily substitute for cash and ultimately lead to 100% LTV funding, though not without sufficient cash for closing. Commercial transactions generally take 30-60 days to close, providing they are approved and accepted. Obviously, uncomplicated transactions contribute to a speedier conclusion, whereas complicated transactions, or those requiring an inordinate amount of time to decipher, prolong the processing period.

Uncomplicated transactions are defined as those characterized by simplicity, such as a commercial building in need of refinancing. A more complicated transaction would be a development project, such as a new casino.Non-conforming applications are approved or declined much faster than conforming ones. Typically, an approval decision for a non-conforming transaction will be rendered within 2-7 days. Uncomplicated transactions are defined as those characterized by simplicity, such as a commercial building in need of refinancing. A more complicated transaction would be a development project, such as a new casino.

The bottom line with private investors is that generally they are sophisticated, non-predatory and do not jump on projects saddled with collateral or equity. They are, however, keen to do projects that make sense. Again, credit is of little concern on conforming projects and not required at all on non-conforming projects.

By: Helen Bassett
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How to Find Great Commercial Properties on the Internet

Whether you are new to the field of commercial real estate or you have been involved in the field for some time, you probably are always looking for great ways to make the whole process much easier. At times it can be a bit difficult to find commercial properties that are for sale; however, technology has now made it easier than ever to find excellent commercial properties quickly. The internet is an excellent way to find commercial properties that are suitable for you without having to do a great deal of foot work on your own. One of the easiest ways to use the internet to find great commercial properties is to take advantage of the commercial real estate databases that are available for your use.

Commercial Real Estate Databases
A commercial real estate database is basically a compilation of various real estate listings, and most of the feature listings all over the country, although some are a bit more local specific. These databases allow you to search for the type of properties that you are looking for. Databases make it much easier when you are looking for commercial properties online because they take listings and put them in one convenient place. This saves you from having to scour the web for listings that are various different local pages. While there are many real estate agent webpages that list commercial listings as well, it could get very tedious to have to go through so may webpages and never find what you are looking for. With the help of the database, you have access to thousands of listings and only the relevant ones will be shown when you do a search.

What Information Will I Find?
There is a great deal of information that you can find at a commercial real estate database. First of all, you will, of course, find great commercial property listings. Not only will you be able to search commercial properties for sale, but you can also search through commercial properties that are for lease as well. If you are interested in finding a broker, most commercial real estate databases also can provide you with information on various brokers in your area. You can also find information on commercial loans at these sites and various breaking news stories in the area of real estate in general. If you are selling commercial real estate, there are often wanted boards as well, with posts from people who are looking for a specific type of property. Once you start using a real estate database, you will be able to benefit from far more than just the commercial real estate listings.

How Can I Use a Database
If you are new to the internet, or even new to using an online database, you may be wondering how you can use a commercial real estate database for your benefit. First of all you will need to know what kind of property you are looking for. If you are looking for commercial real estate for sale, then you will want to choose the option to search these listings. In order to do a simple search, you can just enter the state that you are looking in, and the type of commercial real estate that you are looking for. In some cases you may be able to designate a specific part of the state as well. When you hit the “search” button, you will be presented with listings that match your search results. If you find that your results are too broad, then you may want to choose an advanced search, which will allow you to narrow the search parameters. This type of a search will ask for more than just your location and use for the property. You will able to specify the acreage or square feet of the property, and you can also narrow the search by your price range as well. This will enable to get even more specific search results.

A Few Helpful Databases to Consider
You may find yourself wondering where to get started when it comes to online commercial real estate databases. There are several databases for you to choose from, and you may like one more than the others, or you may decide to use them all. One great database to consider is LoopNet. You can find this database at loopnet.com and it considered to be the largest commercial real estate database on the web. Another very excellent database that is worth trying out is CityFeet. At cityfeet.com you will find a huge amount of commercial real estate listings, and this site provides a variety of helpful tools for those who are involved in the commercial real estate market as well. A few other great commercial databases to check out include commrex.com, land.net, cimls.com, and realestatejournal.com.

While you can try using search engines or even local real estate pages online, one of the very best ways to find great commercial real estate listings quickly is to use the available online databases. As a busy professional, you may not have time to be chasing wild leads, but using these online databases can help you find great properties that are worth checking into further. You will already know that the fit the price and the basic parameters of what you are looking for, so you will find yourself one step ahead of the game. Start making the most of your time and consider using these great online databases as a part of your commercial real estate business.

By: Tony Seruga, Yolanda Seruga and Yolanda Bishop
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How to buy HUD foreclosed properties

There are many types of houses which can be bought on the real estate market today. HUD houses can be found all over the United States and are great opportunities for everybody who is interested. If you are an investor or if you are just in need of a new house, you should consider purchasing a HUD home for sale, which is a foreclosed home owned by the US Department of Housing and Urban Development (HUD) as a result of repossession. The goals of HUD are carried out by the Federal Housing Authority (FHA). When an FHA-insured mortgage is not paid, the house is foreclosed by its lender. Then HUD takes the ownership of the house by paying the lender for his lost money. The property will be quickly offered for sale at a great discount.

If you are interested in finding and buying a HUD home for sale, you are strongly advised to use a HUD approved real estate agent. Even if purchasing a government foreclosed house is easier than a private real estate transaction, the buyer must follow certain procedures and use certain forms. Keep in mind that HUD offers to pay the agent’s commission, if mentioned in the contract. This commission usually amounts to 6% or 7% of the cost of the property.

There are some special programs for teachers, police officers, fire fighters or emergency medical technicians, who can purchase a HUD home for sale at 50% of the listed price. But almost everybody can buy this kind of foreclosed property at a good price, below market value. All you have to do is get qualified for a loan or have the necessary cash. You have more chances if you want to buy a house as your primary residence, but when the 10 days priority period for owner occupants expires, unsold properties become available to all interested buyers, including real estate investors.

Since a HUD home for sale is always offered on an “as-is” basis, it is recommended to get a professional inspection before submitting a bid. Renovations and replacements can increase substantially the cost of the house. But even if HUD properties are said to be in very bad condition, in fact they are comparable to any other foreclosed homes. It depends on how well the past owner took care of them and you just have to pay attention to all the details before selecting your house.

When buying a HUD home for sale, there are no negotiations between the seller and the buyer. The agent you chose can submit your offer during the “Listing Period”, any day of the week, including holidays and weekends. A 5% earnest money deposit must also be submitted. All the bids are analysed within a short period and generally the highest net bid wins the auction. In default of an acceptable bid, the foreclosed property remains open to new bidding until it is sold. If your bid is accepted, your real estate agent is notified within 48 hours and the sale is closed within 30-60 days, a period during which you have to arrange the financing. If you don’t close the transaction by the settlement day, you lose your earnest money deposit or you have to pay for an extension of the contract. Usually, this deposit becomes part of the down payment or closing costs, if your offer is accepted, or is returned to you, if your offer is rejected.

Besides the low price, a HUD home for sale offers you a lot of other financial advantages, since you may qualify for a 3% down payment, you can get a HUD repair loan or you may have up to 5% of your closing costs paid by the government. Nonetheless, you can move in fast, since HUD houses are pre-appraised.

By: Rick Martin
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How To Buy Cheap Property Through An Agent

Most private and investment buyers do so through estate agents. These often charge the vendor a fee of 1 to 2.5% of the total sale price. You might be able to get a slightly better deal by checking private advertisements. The estate agent should be viewed by investors, as a useful person to ask advice on investment property and to help them get to know the area. In a sellers market, such as what we have in early 2004 in the UK, they may be very busy – so investors should try and be as efficient as possible with the use of their time.

Estate agents add a lot of value in holding property deals together, solving problems and negotiating tricky issues for you with the seller. However remember they represent the interests of the seller, so be careful with advice you are given on specific property.

The best plan is to get to know one or two estate agents in your chosen area very well – make sure they know exactly what you want – be very honest with them. Tell them up front how much you are looking to spend what type of property you might be interested in. Ask them if there are any particularly good deals around for such an investor. You will be surprised what might turn up.

Tell them you like to buy under normal market value since you have finance already arranged and are an experienced investor with a strong track record. Offer to give references.

If you are interested in a particular property, ask about the vendor – what do they want apart from a good price? Are they in a hurry to sell? Are they looking for an investors to purchase their property? Do they have to sell because of moving jobs, divorce, financial problems? This information will give you an idea about how low a price you can offer. As a general rule, most sellers like investors because they are not in a chain, they often have finance already arranged and they are normally experienced, with high levels of commitment to purchase.

Estate agents often have their own websites that you can check property details on. Some estate agents also advertise with internet portals so you can see many different agents details on the same website.
If you think there is not any competition for the property, this is the best situation to be in. Put offers on a fax describing the conditions of your offer, advertising your strong points and saying the offer is subject to contract. Having something in writing for the estate agent to give to the vendor always goes down well and demonstrates your commitment.

If you are desperate to get your offer accepted and do not mind risk, you can offer say a small non refundable deposit in cash within say two days of the offer being accepted. This is to show how serious you are – of course the vendor can accept, take your cash, then sell to someone else, but the chances of this underhand behaviour happening is very small.

Try to get to know the vendor and strike up a business like relationship with them. Be nice to them, be friendly and courteous. If they like you they are far more likely to accept your offer even if it is low.

By: splatthefly
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