There are a lot of different kinds of real estate properties available in the market today. But not every property makes for a good and sound investment. You have to be on your guard before you decide on what property to buy. It isn?t something that you rush into doing. You have to do some background check first on the property you like. You also have to prepare several forms and paperwork pertaining to the condition of the property. You have to talk to the owners and do your own inspection of the property. Aside from these tasks, there is also the need to check out the market to see if purchasing this property would be a wise move as an investment. Then, if you are fully decided on the matter, there are still additional paperwork to accomplish plus the haggling on the selling price between the owner and you, which may or may not lead into a sale.

These are just a few of the things that should be taken into consideration when you are looking for a property you are going to use as an investment. Another is the problem of deciding what kind of business or scheme that is fit for your property to give you positive returns on your investment. It does not end in the purchase of the real estate property. It is actually the start since the investment side of the property comes in when you decide on what to do with the property. People consider a lot of factors before finalizing their plans for their property. Is it good for a restaurant or a store? Do you want to sublease it to foreigners or locals? Will you allow kids to live in this property or it will depend upon your interview of your tenant? These are some of the basic questions that you have to ask yourself when you talk about having an investment property.

You would wonder why you have to go through all these processes just to be able to get an investment property. The answer to this is because you want to be sure that the property you are purchasing will truly give you a return in your investment and a steady profit later on. You wouldn?t want to buy a property that will end up a losing proposition, with you having to shell out money in order to make your investment work.

Finding good investment properties is the first step in making your investment a success. Premier business people always point out that in a business it is always the location that matters a great deal, which will dictate the success or failure of your business. If you have found the right place, and decided on the right business to set on that area, then you would be on your way to financial freedom using the profits you get from your investment property. So make sure to exhaust all means before finding that perfect property for your investment.

Most people are intimidated by the prospect of acquiring investment properties. This fear often stems from the fact that potential investors are so preoccupied with what they perceive as the proper time to buy that they pass up opportunities along the way. Some people on the other hand are unsure as to how to choose the best property to invest in. Buying real estate specifically as an investment property guarantees several benefits that are superior to other investments like stocks.

Investment properties are a source of reliable and steadily increasing income. Rent and lease income can be a reliable and more convenient source of income for a wide variety of owners. Moreover, the value of the property itself appreciates through time. With the population increasing yearly, the demand for real estate properties will remain a constant even in the years to come.

The crucial point is choosing which of innumerable options would constitute a good investment property. The first characteristic of a good investment would be the intrinsic value of the property. Ideally, the investment property is bought at a price that is lower than the real intrinsic value so that upon purchase, a profit has already been made.

A buyer should ask himself how long he plans to keep the property. If the intention is long term, he will need to consider expenses relative to the investment property such as repairs, maintenance and taxes. Investors should choose properties that offer income greater than the expense needed for maintenance.

The next major consideration for any investment property is the risk factor. It would do no good to drain the investor of his assets by investing in a risky property. It is also healthy to consider having an exit strategy. This means studying all the possibilities, even those that can happen when things don?t go according to plan.

Finally, review the characteristics of the potential investment property. The location of the property is the primary characteristic that will determine its feasibility and profitability as an investment property. The focus should be on a steadily increasing income and a positive outcome. A common pitfall for some investors is the temptation to be greedy in having a speedy and unrealistic return. By concentrating on a more realistic expectation, buyers are less likely to be attracted to unreliable investment options.

Especially for long term plans, it would also be beneficial for the buyer to avoid the lure of trendy purchases. Just because the rest of the herd is snapping up a particular investment, it does not make that particular investment more reliable. A buyer should rely on rational study instead of emotional judgment in making such an important selection.

All in all, a good investment property is characterized by its suitability to the financial capability of the buyer as well as his investment time frame. It is also characterized by the present and future income to be generated, as well as its suitability to the future goals of the buyer.

Buying investment properties remains the best and quickest way to increase net worth and income yearly. However, the question that investors want answered is how to find lucrative investment properties in today’s market.

The task of choosing an investment property from among hundreds or thousands of offers is a daunting one indeed. Many investors are even more apprehensive when faced with stories of loss due to misrepresentation or fraud. What every investor needs is a reliable source of information and advice to rely upon while making this very important decision.

Buyers should also of course do their own research into the suitability and affordability of a certain piece of investment property. However, it would be very useful to rely on the expertise and experience of a company that would have consultation services. In this way, possible obstacles can be foreseen and a more comprehensive study can be made.

In choosing from the many companies claiming to help investors to locate and purchase the ideal investment property, buyers need to consider a lot the overall entity. A larger company with an extensive network may be able to offer more options to choose from.

Also, investment properties need to be studied in connection with the demographics of the area. Certain key points mark areas that are offer lucrative investment properties. First of all, the demand for real estate or housing should be greater than the existing supply. This forms the basic tenet for investment in order to realize income from the property immediately.

Another key point to consider would be the consistent and significant influx of population migration into that area. This way, even with additional supply of competing properties, the buyer is assured of a regular additional injection of demand from the immigrating people.

Employment opportunities in the area should also be above adequate. This means that the people who make up the demand have the opportunity and means to afford the housing and rent that the investment properties supply. A robust local economy will allow the renters also to provide more and more jobs to the people who continue to come in. This is directly related to the next key point which is income growth. The earning power of the people in the area should steadily increase with time, so as to allow rates for rent also to be increased.

Lastly, there should be a strong demand for properties for rent in the area. Although some areas may have a robust local economy and a steady migration of new people, if the demand for that area is for owned property alone, then rented properties may not be as lucrative.

As such, finding a lucrative investment in today’s market is attainable with a little research and certain factors in play. Buyers should thus remain optimistic that there are still many opportunities for profitable investment. A little homework and the help of a reputable real estate institution would be a move in the right direction.

The real estate market has become a big issue for all of us out there, we’ve seen many homeowners loosing their homes and struggling to find a home to rent because of their credit.

What happen to us?

Remember the bubble 4 years ago?

That’s exactly the answer, from years of prosperity and times of spending, traveling and investing in stocks and real estate, we are now experiencing another bubble but this time the bubble is going in a different direction and we are wondering what to do.

So real estate was going down and it’s still going down, some economists say that it will get stable?in 2 years from now.

The sellers market became a buyers market, and today we all know it by now.

Investors and renters that saved their money for better days to buy to make money are in the market today, that’s making the real estate market busy.

Real estate agents that learn how to change with the market also learned how to make money from the changes, these real estate professionals are making lots of money and while we are all struggling for business they’re making the business.

Today you can get a home directly from the banks for almost half the price.

I’ve seen homeowners that are so desperate that they’re willing to give their homes for free, just come and take their loan and continue their payments.

On the other hand, investors are looking to buy homes in bulk, they can get homes $.50 on the dollar.

Some banks like bank of america and countrywide are selling hundreds of homes in bulk to investors at a discount prices.

So real estate agents are busy getting hundreds of listings and reo’s from banks, then they’re selling these homes at a low price to future homeowners and investors.

It’s definitely a buyer’s market like we had in the early 90′s, so if you’re an investor or a homeowner.

This is your time!

DFW Foreclosures

Mortgage companies and banks own houses because they have acquired them through the foreclosures process.? These homes are called REOs, short for Real Estate Owned. ?When banks obtain homes through the foreclosure process, in most cases, it is because no one at the foreclosure auction bided the minimum amount, usually the amount of the existing mortgage(s), unpaid interest, penalties and legal fees.

At first look, it may not seem as though foreclosures are a good deal.? After all, if it was a good deal someone would have bought it at the foreclosure auction, right?? Also, if the bank wants to sell its inventory on the open market for the amount that was once owed to the bank by the previous mortgagor maybe they are trying to sell it for more than it is worth? With all that said, here are two reasons why an REO can be a great deal ?value? to you.

• If two loans were obtained to buy the property (which is very common these days), the second mortgage holder sometimes does not foreclose. If the second mortgage holder does not make up the back payments to the first mortgage holed, including and back interest, penalties and legal fees and file its own foreclosure proceedings, the second mortgage holder will get wiped out in the foreclosure proceedings of the first mortgage holder. Many second mortgages comprise 20% or more of original market value
• Not being in the real estate business the bank does not want to sit on its inventory. Since it did not receive its minimum bid from an investor or home buyer during the foreclosure sale the bank is likely to price that REO home for less, just to get rid of it and to get if off their books.

About REO Listing Agents????????????????????????????????????????????????????????????????????????????????

There are many web sites available to find DFW Real Estate and DFW Foreclosures, your DFW Realtor can also find them in the DFW MLS. ?If you ask your buyers agent to search MLS for “REOs,” you will probably find that a very small handful of real estate agents specialize in listing REOs for sale in your neighborhood. ?Don?t take a chance on a Realtor that tells you ?sure I specialize in REO property?.

Here are tips that will help you when searching for DFW REO listing agents:

• Most REO listing agents list only REOs, not other type of property.
• REO listing agents often give commission discounts to the banks and mortgage companies in return for their business, because these REO agents deal in volume.
• REO listing agents make money by either selling a lot of REOs or operating as a dual agent, both listing the home and assisting the buyer in buying the same home. ??In Texas this is known as an ?Intermediary?.
• REO listing agents generally represent the seller, not the buyer but can operate as a dual agent.
• REO listing agents are typically top-producing agents because of the volume of business they conduct.
• Some REO listing agents are so busy that they hire assistants to handle calls.

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About Hiring a Buyer’s Agent

Unless you have direct experience negotiating with mortgage companies and banks, it will do you well to obtain representation by hiring your own buyer?s agent. Be sure you interview three buyer?s agents before you select one.? Choose one that has a lot of experience with foreclosures and REO homes and one that is professional and you feel comfortable with.

• Buyer’s agents have a fiduciary (legal) responsibility to protect your interests.
• Buyer’s agents are usually paid by the seller.
• Buyer’s agents represent you, not represent the seller.
• Buyer’s agents may ask you to sign a buyer?s broker agreement, which will lay out the agent?s???? duties to you and it will also specify who pays the commission.
• Hire a buyer’s agent who has experience working with REOs.

About Negotiating with REOs

If the listing is relatively new to the market the bank usually will not come down much from its asking price. You will have more negotiating power if you make offers on homes that have been on the market for longer than 30 days. Here are more tips:

• Banks negotiate bulk discounts with title and escrow companies. If you choose to use the bank’s title & escrow company, check the fees that these companies are going to charge you. In general, fees not paid by the bank but paid by, you the buyer, will be higher because title & escrow often make up those discounts by charging buyers more.
• You will likely be asked to buy the home “as is.”? Make your offer subject to a home inspection. Generally, the bank will not make repairs but if a serious problem comes up during the inspection you will have the right to back out.
• Many banks are moving away from paying typical closing cost for the buyer. Some fees such as transfer taxes, county and state fees, are borne by the buyer and not the bank. Banks rarely will pay for pest inspections, repairs or home warranties.
• Expect the bank have you sign their purchase contract and/or addendum to your standard purchase contract. Read it thoroughly and ask a real estate lawyer for advice if you do not understand it.
• If the bank won’t budge on your offer and you receive an offer rejection, wait another 30 days and then resubmit your original offer, with the original date crossed off and your new date inserted. ??Maybe this time the home will be yours.
• It may take 10 days, or more, to receive a response to your offer from the bank.?
• The bank may ask for you to submit a loan application so it can prequalify you; however, you are not obligated to obtain your loan from that bank.
• If you cannot close by the predetermined closing date, in many cases, the bank will charge you a penalty for each day you pass the closing date. Make sure you have a loan preapproval letter from your own lender before submitting an offer.? Without one the bank may not take your offer seriously.

This is the beginning of a lucrative market for investors. The US real estate market has proven over the years to be a sound investment, even in both booming markets and surprisingly, in depreciating markets. It has been a steady performer over the long haul, and now with a significant dip in property values, it’s quite notably the single greatest decrease in values we’ve seen in decades. Good profits from investments can be made in real estate. Both individual investors purchasing in small scale and multi billion dollar investment firms have the opportunity to make great profits. The changing real estate market is proving itself with dropping prices. Investors with foresight should take the opportunity to cash in on available deals. Here are a few ways investors are making a profit in this present day market.

1) Use a realtor to help purchase properties at wholesale. Realtors can be made a part of your wholesale purchasing team. It’s a numbers game when purchasing houses to rehab and retail for profit. You will have to make hard money, line of credit or cash offers until you lock in on a wholesale purchase. For those with limited money, “hard money” loans are used for leverage and buying power.

2) You can wholesale properties to investors. You can put properties under contract and wholesale them to investors or pre-qualified home buyers for a profit. This is done by collecting a list of wholesale buyers. When you get a property to wholesale, you can pick up a phone and call your list of buyers as soon as they pick up a deal to wholesale.

3) A “short sale” is a popular way for investors to wholesale properties to their buyers. This is a process of negotiating with the bank to purchase properties at discount. Sellers often take this direction to prevent going into foreclosure. Banks do this to avoid the costs of paying attorney fees and the headache of foreclosure procedures with the homeowner. Investors can do this one at a time or in volume. There are many instructors who specialize in short sales.

4) One of the most overlooked forms of making money and by far less risky is to be a “finder” of deals. There are different ways to be a finder; you can find an investor who has access to funding and connect them with a motivated seller. If a deal is done, you make a finder’s fee for putting the two together. The fee will range from $500 to as high as $5,000. Keep in mind, the larger the deal, the greater the fee! Always get your fee agreement in writing prior to introducing the buyer to the seller.

5) Currently, the highest compensation is for capitalized investors purchasing bank owned property (known as REO.) These properties have already been through the foreclosure process and re-owned by the lender/bank. Due to the changes in the real estate market and influx in foreclosures, some lenders need to sell off their large inventory of properties in the shortest amount of time. As a result, they can be purchased in bulk at steep discounts.

Large numbers of defaulted loans, record numbers of foreclosures, increased bank inventory or re-owned bank property all contribute to the significant changes in the real estate market. Over the last year, the media has focused on sub-prime lenders, mortgage companies and credit unions having financial difficulty and many going out of business. It’s a good time for investors to look for opportunities with prices taking a down turn.

Exchange-traded funds (ETFs) are closed-end investments purchased on an Exchange. They are passively managed funds which mirror the performance of specific indices by tracking the performance of the individual stocks that comprise each index. The major advantages of ETFs are (1) low cost structure, (2) tax efficiency and (3) ability to be traded throughout the day. Yet, an even greater advantage is the ability to buy and sell options on many ETFs, which offers investors the flexibility to execute more sophisticated trading strategies that transcend simple ownership of the ETFs.??

Investors, who expect a market rally in an underlying index, buy call options on a corresponding ETF, and acquire the right to buy shares of the ETF at a specific strike price. Call holders are not forced to exercise the options, but if they do, the call writers are obligated to sell shares at the strike price. If the option is not exercised due to the index moving in the opposite direction than the buyer?s expectations, the call holder loses only the premium paid to enter the contract, while the call writer of the option contract gains the premium either way.??

Example

We assume that today an investor instructs a broker to buy on December a call option contract on Coca Cola Co. (KO) with a strike price of $51.70. The broker relays these instructions to a trader at the Chicago Board Options Exchange (CBOE). This trader then finds another trader, who wants to sell on December a call contract on Coca Cola Co. (KO) with a strike price of $51.70, and the strike price for an option to buy one share is assumed to be agreed at $5.20. One stock option contract is a contract to buy or sell 100 shares, according to the law in the United States. Therefore, the investor must arrange for $520 to be remitted to the exchange through the broker. The exchange then arranges for this amount to be passed on to the party on the other side of the transaction.?

In above example the investor has obtained at a cost of $520 the right to bur 100 Coca Cola Co. (KO) shares for $51.70 each. The party on the other side of the transaction has received $520 and has agreed to sell 100 Coca Cola Co. (KO) shares for $51.70 per share if the investor chooses to exercise the option. If the price of Coca Cola Co. (KO) does not rise above $51.70 before December, the option is not exercised and the investor loses $520. Instead, if the Coca Cola Co. (KO) share price rises to $80 and the option is exercised, the investor buys 100 shares at $51.70 per share when they actually worth $80 per share, thus realizing a gain of $2,830 ($8,000 ? 5,170).?

By and large, ETFs are profitable if an investor has a long-term horizon because the more the ETF is held, the lower are the costs incurred for the investors since it is not traded on a constant basis. In general, when buying ETFs, investors should set a clear investment horizon and be aware of the cost involved.

When a bank forecloses, they take ownership of the property, usually in order to resell it in hopes of earning back some of their money. Foreclosures happen because the owner couldn’t make the mortgage payments and had to forfeit the property. Bad for the home owner, good for you, since you can often get bank-owned foreclosure real estate for a song.

Often, what happens when someone can’t make their payments is that the property reverts to the mortgage company, usually a bank, after a failed foreclosure auction. Most foreclosure auctions never receive even one bid, for one reason or another. This means that they end up going to the bank who really has very little use for properties and are usually very interested in getting rid of them as fast as possible. These foreclosed properties are referred to as REOs or Real Estate Owned.

If you aren’t experienced in negotiating with banks, you’ll want someone to be the go-between and make sure things run smoothly. This usually means hiring a buyer’s agent who has experience in aiding bank-owned foreclosure sales. You are not usually the one responsible for paying the agent, take a look at the contract first and you’ll likely find that the seller (the bank) is the one to pay any commissions.

Negotiating the price on bank-owned foreclosure real estate will generally depend on how long the property has been on the market. Banks are not likely to budge much from the asking price is a property has just been put on the market, but once it has been there for a time without offers, they will be more willing to reduce the price in order to sell quickly. It can actually be to your benefit to wait until a property has been on the market for a month or more so you can get a lower price.

Make sure you have a lawyer take a look at any contract that the bank draws up, since this is probably not going to be in your favor. If you don’t understand the legalese, you will definitely want some help translating it. Remember, you don’t have to sign anything until you are satisfied with the deal you are getting.

Another thing to watch out for is the escrow service that the bank uses. Banks often arrange a bulk rate with an escrow service, but you could very well end up paying the difference. Check the fees that you’ll be charged before you pay. They could be steeper than you like and it’s a good idea to know that ahead of time so you can check out your options.

Buying bank-owned foreclosure real estate can be a very good investment, but it does require some knowledge of the system. Until you have a sale or two under your belt, you will want to have a buyer’s agent to make the entire process easier and snag free. Once you’ve actually completed a bank-owned property purchase, you may just find that you are addicted and want to continue to buy properties like this to flip!

Ten Features Of The Payment Stream Financial Program

This program has several consumer oriented features created to qualify more prospective customers and thereby generate enhanced sales capabilities for our clients.

1. No credit checks are necessary in order to qualify the consumer.
2. No formal contracts are required, provided the consumer has authorized payments on their credit card.
3. The receivables will be purchased after the product has been shipped and typically after the 30-day money back guarantee has expired. The intent is that the returned accounts be eliminated prior to the consumer receivables being sold.
4. There is no interest charged to our client?s customers.
5. There is no recourse to our clients.
6. This program works well with credit card payments.
7. This program is great for infomercials.
8. This program works well for our clients who have high mark-ups.
9. The funding source absorbs the credit card fees.
10. The program is based on an automatic debit.

The Payment Stream Financial Program: ?? An Example

Let us say, for example, that you offer a five payment credit card transaction, and receive the initial payment with the first order. You then receive the second payment thirty days later. You may then sell the receivable immediately after having received the second payment and the funding source would purchase the remaining three payments.
However, if you only charge shipping and handling up front and receive the initial payment thirty days later, then the funding source would purchase the remaining four payments.

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If ever there was an argument for the advertising ban on Hedge Funds to be lifted it is this one. Over three years a brazen group of New York scam artists raised about $30 million from unsuspecting investors by posing as principals of a successful hedge fund and then fled with the loot.

Investments from $5,000 to $500,000 were obtained from college professors and educated professionals. It took the group a little more than three years, from early 2003 September 2006 to raise the $30 million.

A grand jury empaneled by Michael J. Garcia, the U.S. Attorney in Manhattan, is said to have handed up a sealed indictment in the case, according to a lawyer hired by 10 of the victims, who said that the FBI was investigating the matter.

The criminals are clearly to blame here, however, this is a problem that, in our opinion, is caused in part, by the regulators themselves.

There is a scam out there that is based on “Prime Bank Guarantees” or “Medium Term Notes” that has taken billions from investors with promises of astronomical returns. The SEC web site says:

“Lured by the promise of astronomical profits and the chance to be part of an exclusive, international investing program, investors are once again falling prey to bogus “prime bank” scams. These fraudulent schemes involve the purported issuance, trading, or use of so-called “prime” bank, “prime” European bank or “prime” world bank financial instruments, or other “high yield investment programs” (“HYIP”s). The fraud artists who promote these schemes often use the word “prime” ? or a synonymous phrase, such as “top fifty world banks” ? to cloak their programs with an air of legitimacy.”

The thing that allows the bogus ‘brokers’ and ‘investment managers’ of this fraud to operate is that they have created a veil of secrecy over the whole operation. The SEC says:

“Promoters claim that transactions must be kept strictly confidential by all parties, making client references unavailable. They may characterize the transactions as the best-kept secret in the banking industry, and assert that, if asked, bank and regulatory officials would deny knowledge of such instruments. Investors may be asked to sign nondisclosure agreements.”

This ‘secrecy’ is what perpetuates the fraud. Simply put, the peddlers of this scheme will tell you that when you do your research that you will find everyone denying the existence of the scheme. They will say that those not in the industry don’t know about it because there would be outrage that rich people could make so much money and those in the industry will deny it because they either aren’t high enough up or are trying to keep it a total secret. They will also tell you that a minimum investment of $10mn is the norm, but they have split up that $10mn to allow their investors in.

This secrecy is the perfect cover, and I speak from personal experience, 15 years ago as an investment pup, to my eternal shame, I got caught in a the same scam.

So we have an ‘investment’ that is supposed to be super secret, has a minimum investment and is not advertised anywhere. Do elements of this ring any bells?

Simply put, the regulators are perpetuating the ‘secrecy’ of hedge funds by not allowing advertisement of the funds. Their rules about only being able to invest a certain amount of money did not protect the people in this case who invested $5000, did it? Something tells me the scammers did not check to see what the net worth of the investors was either.

How would advertising funds have helped? As with everything, the fact that advertising is allowed generates an awareness of a particular industry. How many of you knew how to play poker before the online casinos plastered the web with advertising? My limit was ‘Snap’, now I am a stone cold poker shark.

By the very nature of advertising and, therefore, informative web sites, brochures etc etc, this kind of fraud would be more difficult to perpetrate because the veil of secrecy would be lifted for all to see.

Of course, there will always be criminal elements who will attempt to subvert whatever rules are out there but the regulators throughout the world don’t need to make it easy by perpetuating a secrecy myth that can be exploited by the criminal element.