How Buying Foreclosed Houses?

Purchasing foreclosed houses is one of the best options preferred by many bargain home buyers. It is not surprising! According to some reports, a number of foreclosures for sale can be bought at around 27 to 50 percent discounts. You can enjoy great discounts in almost all stages of the foreclosure process including "pre-foreclosures", home auctions, default notice, government "repo" homes and bank foreclosures.

When thinking about going for foreclosures in Canada, make sure to financially prepare yourself to invest in minor or major renovations and repairs. While a foreclosed property is priced under market value, houses that require substantial repairs can swiftly deplete home equity. As an investor, you should engage yourself in due diligence by means of reviewing sales reports, performing home inspections, obtaining property appraisals as well as repair cost estimates to find out the true value of purchasing foreclosed properties.

Finding Foreclosed Properties

So, how can you find discounted foreclosed properties? One good way is attending a public auction. Nearly all properties featured in an auction are sold as to what their current condition is. You should be ready to make full payment within 24 hours once your bid is accepted. Please be aware that once realty has been transferred, you will be responsible for eliminating tax and creditor liens as well as making needed repairs.

Searching for foreclosed short sale houses is another option. These properties are at times in the middle of the foreclosure process. Buying negotiations often occur with the loss mitigation department of the lender. As with short sales, lenders must agree to accept not more than the full value borrowed on the housing loan. Properties are generally sold through the bank or listed through realtors.

The process of a short sale can be a little complicated and lengthy that sometimes it could take up to five or more months to be completed. Purchasers should get "pre-qualified" financing before submitting an offer. Take note that some banks are not accepting offers that are lower than what is being asked unless inspections of the property reveal major problems.

Investors may find a good deal with short sale properties. However, this could not be favorable for investors who are participating in house flipping or planning to utilize the home for renting purposes. Purchasers who are into foreclosures can generally acquire homes at 10 to 20 percent below the appraised value.

What Is Real Estate Wholesaling?

What is wholesaling? Well, to answer this question we have to know what it means in reference to selling properties. Now there is plenty of material out there to describe this strategy in estate investing and if it's described as the following scenario then there's a good chase you've found valuable information.

The Definition: The art of controlling a property by obtaining a sellers purchase contract from a eager seller for a fix price; once obtain assigning the contract for a higher price to an end buyer (usually investor "cash buyer" not home owner).

This is a great way to begin, for a new comer it's a fast no risk real estate strategy. There are many benefits. You'll never have to use your own money. The term "OPM" stands for other people's money, and essentially that's what you'll be doing; using OPM to fund your deals. You won't need good credit; this is because you'll be using the resources of your financial partner in all your deals. You don't have to be a real estate agent or broker to perform these deals.

You will however, need to structure the deal with the proper clauses in place for your exit strategy to work. You will need the assistance of a Title co. and/or attorney to handle the necessary paper work for closing. You will need to be ready to collect the Money.

The process is simply pairing a buyer with a seller and getting paid for matching the two. Pay attention to the statement just made. A few years back wholesaling properties was extremely easy by performing a few steps.

Step 1:

Find a seller

Step 2:

Gain control of property "get property under contract"

Step 3:

Advertise property

Step 4:

Assign contract to end buyer

Step 5:

Access to Title co, attorney, etc. go to closing

Step 6:

Get paid

Well it use to be effortless finding a driven seller's was easy, however in today's economy for this strategy to work you don't have to re-invent the wheel but some steps have to be altered. What's meant here is certain steps have to be re arranged to ensure leads are coming end and deals will be closed. Banks have made it close to impossible for investors to obtain funding, as well as hard money lenders. Finding motivated sellers first it not a "deal killer", but it will slow your productivity down. The best way to execute a wholesale deal in this current market is to build a buyers list. Have buyers on deck ready to purchase any deal you bring to the table.

So what should your first plan of action be? How do you find these motivated buyers? You market to them like you would if you're looking for a sellers. Through traffic generators: build a squeeze page website, blogs, direct mail (yellow letters, post cards, text blast). Once you've built a list, gather pertinent information from your buyers like the location of investing interest, price range, and min/max. amount of rehab desired if any etc. Once a rapport has been established begin looking for properties that fit the criteria of your financial partners.

Best Tips on Maintaining Rental Property When Investing

Maintaining rental property is incredibly important. Studies have revealed that the number one reason tenants renew their lease is because it continues to be maintained well! Tenants tend to terminate their leases when things are left to get worse or they were ignored. You are able to do yourself a huge good deed by being very attentive to complaints. Fix things yourself, or rent the work out!

Take into consideration what takes place in your own personal home when something goes wrong. Odds are probably good that you simply phone in a renovation or repair man right away. Dealing with something like cold water, clogged plumbing, and other problems are definitely no fun when maintaining rental property!

Now, put yourself in your renter's shoes. They have got to depend on you to get these things rep`ired! Don't leave them waiting longer than they should to have things taken care of.

There are a few standards you should pursue when it comes to maintaining rental property. First, you need to be prepared. Paying attention to details and taking defensive measures can go a long way.

Within your lease, you must have some language that details how long tenants should expect a repair to get handled. In most cases, a work order needs to be responded to within 24 hours at the most. If it is going to take longer than that, the tenant should be contacted right away to let them recognize that everything is being handled.

Should you get a work order, you'll need to make 2 copies of it. The 1st needs to be filed in the tenant's file. The 2nd should be placed in a separate file that contains all work orders you are given. This will assist to keep you organized. It will even assist you to if you ever need to look the work order up within the future.

Renters should always have an emergency number they could get in touch with. If something like a pipeline bursts, you will no doubt need to know about it straight away! Or else, the unit may become very damaged.

Some landlords choose to do the maintaining rental property themselves. Though, if you're not handy or sense like you have a lot of other obligations, then you'll need to establish an account with service companies like plumbers and electricians. It is possible to notify them straight away and never have to deal with anything above and beyond having to pay the bill!

There is a fine line in terms of things that break through no fault of anyone or through tenant carelessness. You have to use your discretion to determine whether or not you can charge the occupant anything for the repair.

5 Lease Agreement: Things You Should Know

When you are choosing lease agreement for your property, you will have lots of choices. You may get confused about which options you should choose and which once should be left. Moreover, the internet has opened the doors of even more options.

The lease agreement is one of the most important documents that every landlord must have. In fact the base of your property business stands on your lease agreement, therefore you must act wisely while selecting the terms of the lease agreement. You should not base your decision based solely on cost. Here are some points that you should consider while making this important document:

1.The first important thing to consider is that the agreement must be legal. There are many generic forms for lease agreements available in the market. These documents have only basic terms. These are just paper forms that you can get from an office supply chain. These documents lack recent legal changes. Hence, it is important that you should make sure that the agreement you are using should have all the important updates and should be in accordance with current contract law.

2. You should make sure that the terms of the agreement should be applicable in your state. Laws are constantly evolving at state level impacting the relationship of landlord and tenants. Always make sure that your document incorporates all the latest laws and regulations applicable in your state.

3. Your lease agreement should have details of the basic concepts. The paper forms available in the market have only the basic terms without any details. They do not guide your relationship with your tenant. There are many things that should be decided well in advance to avoid any kind of problem in future. Such as you should clearly specify in the agreement that who will have the responsibility of checking smoke detectors or shovel snow etc.

4. The agreement should have clear instructions for the tenants about how they should tackle different situations such as burst pipes, fire emergency, gas leakage etc. This agreement should be like guidance for tenants to help them deal with the different household crisis.

5. It is advisable to make your agreement from a professional containing all the important terms and conditions of the lease. It should be a comprehensive forum containing all the details and explaining clearly what kind of relationship you want with your tenants and what should be their behavior.