Richard Bleuze's Blog

Working With A 1031 Exchange

Richard Bleuze (Richard Bleuze) — Thu, 16 Apr 2009 11:15:10 -0700

Working With A 1031 Exchange

Finding the right property, the right loans and the right people to work with are obviously great assets when investing in real estate. There are also ways to save money when you own property by discovering what a 1031 exchange is.

A 1031 exchange or tax-deferred exchange is a method for selling a property that is qualified, and then acquiring another qualified property within a certain period of time. It is unique in that the entire transaction is treated as an exchange rather than a simple sale, which allows the taxpayer to qualify for a deferred gain treatment. In other words, sales are taxable with the IRS, but 1031 exchanges are not.

Exchanging a property represents an IRS-acknowledged approach to the deferral of capital gain taxes, and it is extremely important to understand the components involved and the intent of such a tax deferred transaction. Anyone investing in real estate should use a 1031 exchange when he or she expects to purchase another property after the sale of the current investment property. Otherwise, they would have to pay a capital gain tax that could run over 30 percent in capital gain, determined by the federal and state taxes according to where they live. In other words, when you purchase a replacement property without the benefit of a 1031 exchange, your buying power is lessened and only represents 70 to 80 percent of what it once was before the exchange and payment of taxes.

The rules that apply for a 1031 exchange are the total purchase price of the replacement property must be equal to or greater than the total net sales price of the relinquished real estate property. All of the equity gained from the sale of the relinquished property must be used to purchase the replacement. If these rules are violated, a tax liability will be accrued to the person doing the exchange. IF the replacement property purchase prices is less, there will be a tax incurred. A property transaction can only qualify for a deferred exchange if it follows the 1031 exchange rule of the US tax code and the treasury regulations.

With property values down, you can get a bigger home using a 1031 exchange. In addition,you might want to take advantage of a 1031 exchange with all the changes going on in Washington D.C.!

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Learning To Invest In Foreclosures

Richard Bleuze (Richard Bleuze) — Thu, 02 Apr 2009 18:42:05 -0700

Learning to invest in foreclosures

There is lots of talk these days about foreclosures. Investing in foreclosures can be a big money maker when it comes to real estate investing niches. While investing in foreclosures results in large profits when you choose the right house, ther are pitfalls that you must look out for before you buy a foreclosure. there are a lot of other factors to consider.

A foreclosure occurs when the owner defaults on the mortgage. The bank has to start the process of taking the property that was pledged as security for the homeowner's loan. If the homeowner can't remedy the situation by paying the bank any money that is then owed, the property will likely make its way to public auction where it will be sold to the highest bidder at a sheriff's or trustee's sale. In my state of California, they use a trustee sale.

When you are investing in a foreclosure, the first step is to determine what you are doing with the property. Do you plan on flipping it for a profit? Are you going to keep it as a rental? This will determine what area you should look in when searching what type of foreclosure properties you're interested in pursuing.

The main factor to consider when you invest in a foreclosure is to know the law in that jurisdiction. There are laws that vary from state to state and county to county that govern foreclosures and if you violate those laws, accidentally or purposefully, serious consequences will follow.

A lot of the home study courses and infomercial gurus advise buying a foreclosure and then renting the property back to the homeowner with the hope that they'll repurchase it at a higher price in the near future. Do not do this! One of the highest risks a real estate investor can take is letting the previous owner come back and reclaim their property because they misunderstood what you had agreed upon. In most states, you, the real estate investor, is the "bad" guy - you lose!

Besides, would you really want a tenant in your property that has a history of not paying their bills? Of course not! You should always run a credit report on the potential tenant no matter what their excuse is today. However, many beginner real estate investors as well as many experienced foreclosure investors do that very same thing each day and pay a high price for doing so, oftentimes losing their investment completely when a judge declares that the transaction was indeed a usurious loan instead of an option to repurchase.

During various stages of foreclosure, you can make a deal happen between you and the homeowner in default, wait and purchase at the auction, buy after the auction or many other more sophisticated strategies. If you intend to buy a property at the public auction, know that in some states, the law sets a certain time frame for foreclosures to become finalized commonly referred to as a redemption period.

If you're considering investing in foreclosures, it is highly advisable for you to find out if and how this law potentially affects the ownership and possession of the property in your local area. You may think you own the property, when in fact you are a temporary caretaker for a set period of time. Once again, know rhe law!

If there is a redemption period, the homeowner could be working out a deal with another investor or attempting to sell the property in some other manner without you even being aware what is happening. This can obviously have a big impact on what you do to the property during the redemption period, even if the property is vacant at the time of the auction.

You could find yourself investing in foreclosures, putting money into them, only to lose all of the profit you thought you had coming to you. You are buying real estate foreclosures to make a profit. Act like it and treat it has a business!

Many real estate investors look at investing in foreclosures as a sure bet to increase their wealth and or portfolio but fail to realize the potential pitfalls that await them. Knowing what to do as well as what not to do will save you a ton of money and headaches as you progress into the arena of investing in foreclosures.

When you finally decide to buy real estate foreclosures, the bottom line is always to make a profit. A good rule of thumb to follow is only consider buying a foreclosure if you stand to make at least a 30% profit no matter what happens. That way, you'll never have to worry whether or not you should make a deal or not.

Once you learn your local market for investing in foreclosures, you will find yourself keeping an eye on which properties are headed to foreclosure and how to potentially make potentially high profit deals happen on a regular basis. You will also begin networking and becoming familiar with other investors in your area.

Finally, do not do everything yourself, especially if you are just starting out in the business. You should actively seek out someone more experienced than yourself to model.

And remember, that education and specialized knowledge are key as well as taking massive action on what you learn along the way will guarantee your success as a pro real estate investor!

For great information, I suggest that you go to my website and sign up for government auctions - http://3206w76230.govauction.hop.clickbank.net

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrilevalleyrealestate.com

Timeshare Rental In Orlando, FL

Richard Bleuze (Richard Bleuze) — Thu, 26 Mar 2009 18:46:06 -0700

Orange Lake Weekly Vacation Rental

Sliding into cool, blue pools. . . making waves on a sparkling lake. . .sinking a putt at sunset. . . experiencing the fun and fantasy of Orlando theme parks. . . If you can dream it, you can do it all right here. At Orange Lake in Orlando.

Nice 2 bedroom villa on main road with major golf in backyard (4 golf courses on premise). This complex is top of the line - named by RCI as a Gold Crown Resort. Near all major attractions in Orlando.
This is for the 28th week (July 11 to July 18). If you need it for another week, it can be arranged for an additional $60.

THIS IS FOR A WEEKLY RENTAL FOR $700

For more information, go to http://www.bidshares.com/433734

Address: 8505 W. Irlo Bronson Memorial Hwy
City and State: Kissimmee, FL
Country: United States
Weely Price: $700.00

Property Details:
2 Bedroom(s)
2 Bathroom(s)
0 Car Garage

Neighborhood: Orange Lake Country Club - Near All Orlando Attractions

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Understanding FHA Home Loans

Richard Bleuze (Richard Bleuze) — Fri, 20 Mar 2009 02:43:07 -0700

Understanding FHA Home Loans

Many first-time homebuyers will find that a Federal Housing Authority (FHA) backed mortgage makes buying a home easier, or possible, thanks to less-rigid borrower requirementssuch as:
A low minimum down payment
Reasonable credit expectations
More flexible income requirements
Perhaps more so than for conventional loans, providers of FHA loans are willing to look at the whole picture rather than dismissing a borrower for falling short on a particular criterion.

Still, not everyone can qualify for a FHA loan. Thus, it can sometimes be frustrating when applying for a FHA loan.

Background
The money for an FHA mortgage is not given to borrowers by the FHA; rather, borrowers receive the funds from an FHA-approved lender, and the FHA guarantees the loan. This is very important and is the reason for the additional fees.

In addition, the FHA offers lenders flexibility in determining loan eligibility based on the total picture of the applicant's situation, rather than requiring strict adherence to a list of requirements. This often allows for different underwriters to interpret the guidelines differently; one institution may give you a loan while another might reject you. Let's review the major components that determine borrower eligibility.

Dwellings Eligible For FHA Mortgages
As a rule, a property financed with a FHA loan must be the borrower's primary residence and must be owner-occupied. Generally, this loan program cannot be used for investment or rental properties. Detached and semi-detached houses, townhouses, row houses and condos within FHA-approved condo projects are all eligible for FHA financing.

Maximum Mortgage Amount
The maximum mortgage a borrower can receive, assuming he or she has the required income, is the lesser of:

The statutory limit for the geographic area in which the home is located.
The maximum loan-to-value (LTV) ratio. In addition, the limits are indexed to Freddie Mac-conforming loan limits.

Credit Score
The FHA does not have minimum credit score requirements for its loans. That being said, borrowers with poor scores may be disqualified based on the activities that created those low scores, such as not paying bills on time.
Having no credit history is not a problem in most cases. Instead, the lender will look at other payment-history records, such as utility and rent payments. In addition, a previous foreclosure, short sale or bankruptcy will not disqualify the borrower, as long as enough time has passed (usually three years for a foreclosure or short sale and one to two years for bankruptcy) and the borrower has established a documented ability to manage his or her finances since the negative event.

Finally, consumers who participate in credit-counseling plans are eligible for FHA loans as long as they have been in the program for at least a year and have made all the required payments on time. Consumers who have successfully completed a credit-counseling plan should be prepared to provide documentation of successful program completion.

Income and Employment
Only stable and documentable income can be considered for a borrower's mortgage eligibility. In general, most lenders like to see at least two years of steady employment in the same line of work prior to the mortgage application, with no more than a one-month gap in employment. In addition, the job must be expected to continue for at least three years after obtaining the loan.

For the above reason, part-time employment does not count unless it has been uninterrupted for the last two years. Nor does a full-time contract position that will end shortly. In addition, if you are planning to retire shortly, your current salary will most likely change and thus another reason for a rejection.

However, on the positive side, a borrower who has changed jobs frequently in order to move up in their fields and increase their income are often looked upon positively. Also, there are allowances for those who work seasonally or have taken an extended leave of absence from the workforce, such as to raise kids or attend school.

As for self employed individuals, you will need two years of successful self-employment history, documented by tax returns and a current year-to-date balance sheet and profit and loss statement. Applicants who have been self-employed for less than two years but more than one year can be eligible if they have a solid work and income history for the two years preceding self-employment and the self-employment is in the same or a related occupation.

Debt-To-Income Ratios
Unlike many conventional loans, FHA does not set a maximum limit for the debt-to-income ratio, though exceeding a 45% back-end ratio takes special consideration and considerable cash reserves. In other words, the total of your debt obligations should not exceed 45% of your gross income.

Down Payment
FHA loans offer one of the most generously low down payments. In addition, gift funds may be contributed to the down payment if they come from an acceptable source such as a relative or employer. However, if the gift was given in the distant past, generally three months or more for mortgage purposes, it will not need to be verified or even mentioned in the application.

Closing Costs
FHA loans allow the seller to contribute up to 6% of the purchase price toward the buyer's closing costs. This feature of FHA loans makes it easier for cash-strapped buyers, or buyers who would simply prefer to hang on to their cash so they can invest it elsewhere or use it to remodel, to purchase a home.

Mortgage Insurance
FHA loans require mortgage insurance because of their low down payments. Up-front mortgage insurance is due at the time the loan is taken out. This amount is equal to 1.5% of the loan amount and is typically rolled into the mortgage so the buyer doesn't have to come up with extra cash to close. This premium does not decrease the total loan a borrower is eligible for, however, rolling it into the mortgage does increase the monthly payment slightly. The monthly payment will also include a monthly mortgage-insurance premium, which costs about 0.55% of the loan amount on an annual basis. This premium is generally lower than the private mortgage insurance (PMI) would cost on a non-FHA loan with the same down payment.

FHA Inspection and Appraisal Requirements
FHA requires all the mortgages it insures to be backed by homes of a particular caliber. Thus, even if you qualify for an FHA mortgage, that doesn't mean you'll be able to purchase the exact home you want. Essentially, the home must be habitable, with running water, toilets, a good roof, a stove and the other elements necessary to live in a safe and sanitary manner. thus, major fixer-uppers, while they can be a bargain sometimes, are not likely to qualify for FHA financing because of this requirement.

In addition, the property must appraise at or above the purchase price, otherwise, it cannot be purchased with an FHA loan unless the purchaser/borrower can come up with enough cash to make up the difference between the appraisal amount and the sale price.

Conclusion
The FHA-loan underwriting process offers a lot of flexibility in evaluating borrowers' ability to repay a mortgage. If your situation is not described in this article, that doesn't mean you won't be eligible for an FHA mortgage. This mortgage program looks at the borrower's big-picture situation, and financial strengths in some areas may compensate for weaknesses in others. If you want to know if you qualify for FHA financing, the best way to find out is to talk to an FHA-approved lender in your area.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

The Housing Market In San Gabriel Valley, California

Richard Bleuze (Richard Bleuze) — Thu, 05 Mar 2009 15:12:35 -0800

Housing Market In The San Gabriel Valley

The industrial vacancy rate in the San Gabriel Valley is only 1.9%. In the year 2005, nearly 2.3 million square feet of space was under construction. The real challenge in the San Gabriel Valley is finding land for new development. The office vacancy rate in mid-2005 was only 10.0%. However, once again it is because it is not easy to find vacant land. In addition, many of the vacant land have what is known as Brownfield issues. A Brownfield is a site, or a portion of a piece of property, that has actual or perceived contamination and an active potential for redevelopment or reuse. Many areas across the country that were once used for industrial and commercial purposes have been abandoned - or are underused, given their location.

On the residential front, new homebuilding in the San Gabriel Valley is difficult because there are few large parcels of land, and communities are concerned about growth, traffic congestion and impact on public services. In addition, this economic downturn has affected many developers in the area. Pasadena has seen an increase in transit-oriented residential development and a surge in multi-family units. However, for the San Gabriel Valley as a whole, the bulk of new building permits have been for single-family residencies The resale housing market has a wide range of prices. La Canada Flintridge and San Marino are at the high end of the spectrum, with averages of $1,200,000 and $1,100,000 respectively. The most affordable cities in the San Gabriel Valley are Pomona and Baldwin Park, at $350,000 and $375,000 respectively. However, I'm sure with the economic downturn, the prices will drop even further. I know that, at the moment, homes in general are not selling.

Those who choose to live in one of the region's 31 communities find that the San Gabriel Valley offers something for everyone. Housing options range from new starter and move-up homes to select executive-level properties in some of the most exclusive neighborhoods in California. And, all these varied choices are within a short distance of quality educational institutions.

In addition, the San Gabriel Valley enjoys a year-round temperate climate. The San Gabriel Valley is within short distance from the beach, mountains, Santa Anita Horsetrack, and famous amusement parks.

In general, I would say that the San Gabriel Valley is the place to live!

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Investing In Real Estate Can Be Good, Bad or Ugly

Richard Bleuze (Richard Bleuze) — Thu, 26 Feb 2009 12:32:45 -0800

Investing In Real Estate Can Be Good, Bad or Ugly

The world of real estate investing can be good, bad or downright ugly. The real estate business is risky and it takes a good deal of learning the tricks of the trade to experience the good. But even the best probably have bad experiences and ugly stories that make for great lessons in learning what not to do in real estate investing.

The Good
A smart real estate investor will always use tools like The Multiple Listing Service (MLS). MLS is like a bible to those serious about investing in real estate, because it lists all properties for sale by brokers. Listings in the MLS give generous information about the property being sold and tell you if they are handyman's specials, bank-owned, in estate and what the asking price is.

If you're in the real estate business and have houses to sell, the Yellow Pages are a traditional and fairly successful place to advertise. You may not get a flood of calls on each and every property you own, but those that you do receive usually hold promise if not an outright offer.

Bad news can be in the your future if you rely heavily on For Sale By Owner investment sales. For Sale By Owner can mean one of many things. You might be wasting you time, because many people who are advertising selling property on their own are merely putting a poke in the fire so to speak, to see what the market is like and how many bites they get. These folks also feel, in many cases, that they know it all and can do it own their own. Meaning, they don't like to pay any expenses that go with hiring an agent to get the job done right.

The ugly in real estate investing can really turn into 'good,' because if you invest in a home that is ugly and needs repairs you could make a hefty profit when you are ready to sell. If you are into flipping in the real estate market, buying an ugly house, fixing it up and turning it into a profit as soon as possible, ugly may be the way to go.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

. They will also include houses for sale in the local real estate books as well as multiple listings. Many realtors are now advertising houses online as well (I am finding this to be the best form of advertising since many potential buyers are now internet savory). Real estate agents can provide your house with the exposure you need to land a sale.

Having a real estate agent will also be helpful when the time comes to make an offer on a home or to consider an offer for your house that is for sale. Real estate agents can help you decide if the offer is right for you. In most cases, good real estate agents are also experienced in helping you to negotiate with the other party. The good real estate agent can help you to turn a no into a sale. At least they should be able to do that!

Your real estate agent can also help you with closing on your house. A good real estate agent should be able to guide you through the process of buying or selling a house from start to finish. Their knowledge of the legalities of the process will make the steps a little easier for you.

A real estate agent can be beneficial to anyone selling a house. They can help you to market your home and gain enough exposure to make a rapid sale. Real estate agents will interact between you and potential buyers. They are working for your best interests.

Hopefully, this brief article will have provided you with tips in what to look for when picking a good real estate agent to work for you!

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 comments • Richard Bleuze • February 20 2009 03:29AM

Tips For Selling Your Home

If you're thinking about selling your home, before you make a move there are some ways that you can make the home selling process smoother and more financially rewarding.

The first important step that might take some time is getting your home ready to sell. Even if you've just renovated, there is a way to you're your home presentable to viewers, so that a potential buyer can visualize how he or she sees the home the way they would like it decorated. This process is known as 'staging'. It basically involves cleaning up clutter and allowing for as much clean space available.

The next step is best done with a realtor and involves pricing your home. A realtor will help you figure out what your home is worth by determining factors like how the real estate market is, the neighborhood your home is located in and how much house you are offering. You may have an opinion about what you think the property is worth, but it's best to ask a selling price based on statistics that really tell it like it is.

Interview a few real estate agents before you hire one. The best real estate agent will listen to you and put your interests and needs first. A real estate agent will have the skills to use analytical and marketing techniques to make sure you sell your home in a timely fashion for a price that hopefully pleases you. A real estate agent will also list your property as an "open", "exclusive" or "exclusive right to sell" listing. An open listing allows you to sell the home yourself, and you will only pay a selling broker's commission. An exclusive agency listing is like an open listing, except the broker can work with another brokerage that could have a buyer who makes an offer you can't refuse. In this case, both brokers split the commission that you pay. Exclusive right-to-sell is the most common and allows the broker the exclusive right to earn a commission by representing you and supplying the buyer. You will pay for the listing and selling broker fees.

When a buyer is interested in your home, a home inspection will be arranged. Make sure that your home will pass inspection by make necessary minor repairs before hand or be prepared to lower the price is defects are found.

When the house closes (close escrow), your property deed, reconveyance and deed of trust will be recorded in public records, and a title will let you and your agent know that it has been recorded. Keep in mind that once this is done, the buyer has possession right and you may be asked to move that day.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 comments • Richard Bleuze • February 05 2009 12:02PM

Termite Damage And Real Estate

Termites are the greatest economic pest in the United States and can cause billions of dollars in damage to homes, historical structures and other buildings. They eat wood as well as books, documents and photographs. They are a social insect and live in colonies. They can live for a decade or more and produce huge colonies with literally thousands of offspring.

When termites have infested a home, it is never a good sign. A home must be inspected for possible termite invasion when a real estate transaction is eminent, and if it is found, it may seriously affect the transaction. The buyer should be told that the seller must fix the damage and remove the infestation, but it is no easy task to get rid of termites or repair the damage that they might have caused.

Although the task of cleaning up after a termite invasion may seem simple, it is not. There may be structural damage that can cost a hundred times more than the actual cost of treating the termites. If the structure is damaged, you better think twice about making the purchase, because although the seller might be willing to cover the cost of the treatment and any visual damage, what can't be seen is probably where the real (almost unrepairable damage) has taken place. In some cases, center beams in homes have literally been eaten away, and floors will show visible signs that termites are eating their way through the wood. Depending on the time of year, when infestations are bad, termite eggs can be seen in windowpanes and other damp places. If the problem isn't treated, the house can be literally eaten away.

To really know how badly termites have damaged the structure of a home, everything in the home should be removed. To uncover latent damage, carpets should be taken up, walls and ceilings should be opened and, in some cases, excavation should be done. This is the only way to find out how much damage has been done and how much it will cost to repair. This type of inspection is called invasive and destructive testing and requires further evaluation by experienced contractors and specialists to define the extent and cost of any necessary repairs. Most homeowners don't want this done because it is costly and can get quite messy. A prospective buyer should ask for written documentation from an expert to determine the extent of termite damage that has occurred, as well as a treatment and repair history from the owner. If there is no damage, that should be documented as well.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 comments • Richard Bleuze • January 29 2009 02:00PM

Tax Advantages of Owning Real Estate

Perhaps the greatest advantage of owing real estate property is the right to deduct interest paid on a home mortgage and a home equity loan. In order for this to happen you must qualify for an income take deduction by having acquisition indebtedness, which is incurred by acquiring, constructing or improving a qualified residence secured by the residence and limited to a $1,100,000 aggregate loan. You may also qualify through "home equity indebtedness", which is secured by a qualified residence to the extent that the loan amount does not exceed the fair market value of the qualified residence reduced by the amount of the acquisition debt. Qualified residence is your principal residence and another residence like a vacation home that is not rented to anyone else.

The interest paid on the mortgage of your home, vacation home and a home equity loan can be deducted from your income if you complete a Schedule A (itemized deductions) form and attach it to your 1040 Federal Income Tax Return. Many states also allow you to take a deduction from your taxable income for the interest you paid on your home, vacation home and qualified home equity loans. The interest that you pay on a mortgage for your home, your vacation home, and for a home equity loan can be deducted from your income. In order to take the deduction, Schedule A (Itemized Deductions) must be completed and attached to your 1040 Federal Income Tax Return. Many states likewise enable you to take a deduction from your taxable income for interest paid on your home, qualified vacation home and qualified home equity loans.

You can also deduct real estate taxes on your federal return. These include any state, local or foreign taxes on property levied for the general public welfare and must be based on the assessed value of the property and charged against all property under the jurisdiction of the taxing authority. This generally does not include taxes charged for local benefits, trash and garbage pickup fees, transfer taxes, homeowners' association charges or rent increase to higher real estate taxes.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 comments • Richard Bleuze • January 22 2009 01:44PM

Should You Become A Landlord

There are many pros and cons to becoming a landlord. Given the right circumstances, becoming a landlord can be a way to put some extra cash in your pocket and receive tax deductions on expenses and depreciation for property taxes, mortgage interest rats, repairs and maintenance costs and marketing. However, you must determine whether becoming a landlord is right for you by deciding what you can rent your property for. You can do this by looking into rental rates in the general vicinity of where your property is located. You can also check with a real estate broker to see what the area's vacancy rate is. Once you subtract property expenses, you must also account for other expenses like mortgage payments if there are any, insurance, utilities, repair and maintenance costs. Maintenance costs can become significantly high if you are renting an older property. To determine your profit, subtract expected vacancies and possible expenses from the annual rent. If you see that you will gain a profit of $100 or $200 a month, it may be worth becoming a landlord.

It is very important that you treat your responsibility as a landlord as you would treat a business. You might want to invest in hiring a management firm, especially if you are living outside of the state of where your rental property is located, I do not recommend doing this! A rental firm will screen qualified tenants by running credit and background checks and help you determine what a reasonable monthly rent. If you choose to rent on your own, make sure you know everything there is to know about the tenant(s) you are renting too, since good tenants are rare and your profit could go down the drain if your property is destroyed.

Good tenants or not, it is always wise to keep a cash reserve for unexpected rental expenses or for rental payments should your tenants decide to move. I suggest at least 15% of the yearly rent amount. It will probably take a few months to go through the process of renting to another qualified tenant.

A landlord should also make sure that there is a rental agreement with a monthly fee that is fair and allows for raising the rent when it needs to be raised to keep up with the cost of living. You want to make sure that your tenants have the feeling that you respect their needs and that they respect your. Set reasonable policies and procedures and stay in control, and you will reap the benefits that a good landlord can realize.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 comments • Richard Bleuze • January 01 2009 01:52PM

Selling Your Home Fast

Buying or selling a home can be a time consuming process, and although there are thousands of people looking to buy homes, it can be a long process to find the right person interested in buying your home. Selling homes is like any competitive process - the glitch is - there are hundreds of thousands of home on the market to sell.

To sell a home quickly, you need to attract the most attention as soon as possible. A real estate agent can help by advertising and showing your home as much as possible, but you will also have to put some effort into the selling process if you want to sell quickly.

The first step you should take to sell your home quickly is to have it staged. A staged home is a home that has been brought down to the basics. All clutter is removed and detail is given to making each room as large as possible, so that the buyer can image how he or she would decorate. Statistically, it has been proven that staged homes sell much faster than those that are not staged, because today's home buyers have a clear vision of what they want, and if your home is cluttered with your grandmother's photos, not to mention her furniture, it will not work.

Using a real estate agent is usually much better than doing it yourself since they have the connections ad can advertise it much better than yourself. If you want to sell your home faster, I would not sell your home yourself!

Another hint to sell your home in a rapid fashion is to sell it yourself at an attractive price that will draw immediate attention to anyone looking for a home. You can market, stage and show your home and let those looking know that you are willing to talk - giving them the impression that they are in the driver's seat, and you are willing to listen. Again, it can't be emphasized enough that when you show your home both the inside and outside should be clutter free and aesthetically pleasing - a sure fire way to have potential buyers coming back for a second look with an offer in hand.

When a buyer makes an offer, and it's lower than you had anticipated, this could be a problem. However, if the offer is close to the asking prices and there are no other bidders, then it might be worth accepting if you are trying to sell your home as quickly as possible. On the other hand, if it's early in the game, and you can wait it out - it might be worth the wait to see if a higher bid will soon follow. However, usually the first offer is the best offer!

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 comments • Richard Bleuze • December 24 2008 09:29AM

Real Estate Forms

There are an endless amount of forms associated with a real estate investment, and you will need to know what each form is and keep track of each as they are signed. Always request a copy of any form that you have filled out or signed. It is the best way and only way to keep an accurate account of the investment you are making including income and expense.

It makes sense to always have each step of a real estate investment documented. The process is long and arduous whether you are buying or selling a house, and each form that goes along with the process is an important piece of documentation that should be available for review upon request. There are those buyers and sellers who choose to prepare their own documentation, but there are also ready-made forms available. The forms can be picked up at any real estate office or downloaded from the Internet at almost any real estate website. These ready-made forms are easy to use and cover virtually all transactions you may need to be documented.

Forms include basic real estate transaction requirements, as well as legally binding paperwork necessary in all real estate deals. The forms can be purchased individually or you can buy a package that will pretty much contain everything you need. Individual forms are more appropriate for short-term leases like vacation rentals and in most cases other rentals like apartments or homes. If you are planning on buying or selling a home, then you will need a set of forms, so it is probably the wisest choice to purchase them all at once.

Prepared forms are accurate, legal and up-to-date in most cases. To be sure, you can check with your local law and real estate office to make sure the forms are current and any recent revision to the law or real estate regulations are accounted for.

With ready-made real estate forms, the process of transactions is easier than every, and they are designed so that you can do them on your own or with the help of a realtor.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 comments • Richard Bleuze • December 18 2008 12:02PM

Real Estate Forms

With ready-made real estate forms, the process of transactions is easier than every, and they are designed so that you can do them on your own or with the help of a realtor.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 comments • Richard Bleuze • December 11 2008 08:20AM

Real Estate Brokers

When someone purchases a home, it is a big decision and there is a real estate agent or broker there to help in the decision making process. There is a difference between real estate agents and brokers because a broker takes on more of the administrative responsibilities. Whereas there can be many agents working with people interested in one property, there is usually only one broker per property.

A real estate broker is a professional who is able to work as a mediator for buyers and sellers of real estate. The job of a real estate broker takes a proactive approach looking for buyers who have a property that a seller wishes to sell and does it in a way so that both are happy. A real estate broker usually has a relationship with a local realtor or can also be a freelance broker that focuses on selected projects almost anywhere in the country. Unlike a real estate agent, that is more or less a sales person for a broker, a broker usually does not receive a commission but is compensated through the application of agency fees that are related to the broker's services. Another difference between an agent and a broker is the agent pays more attention to getting a sale, whereas a broker looks for sellers to sign up with a real estate agency.

In some countries, real estate brokers must be regulated. They are required to have a degree of training and certification by an accredited real estate company. There are also other legal entities that a real estate broker must adhere to in order to be compensated.

A real estate broker really has to look for opportunities because not everyone who matches buyers with sellers has to be a real estate broker, and in some cases an attorney will act in the same capacity receiving a fee for services related to the sale. Also, buyers and sellers who wish to carry out a transaction without using a real estate agency can do so without either having or needing a certified real estate broker.

There are also contra brokers that are much like a real estate broker that initiates a transaction for an investor, but the contra broker will handle any action that is required to work with the initiating broker to successfully finish the order issued by an investor. When on the buying side of a deal, a contra broker will try to ensure that the purchase goes through without snags, and when on the seller side, the contra broker will perform all tasks associated with the transaction efficiently and in a professional manner.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 comments • Richard Bleuze • December 04 2008 05:07PM

Real Estate Bird Dogs

A very important part of a real estate plan is a person known as a bird dog. A bird dog's job is to find property for those wanting to invest in real estate. They never have an attachment to the investment property after it is found and turned over to an investor. The real estate bird dog finds the leads that look good and can be sold at a fair price. A bird dog is paid a referral fee by at he investor to come up with great leads.

Bird dogs usually find homes that are being sold by an owner. They bring it to an investor that pays a certain amount for the bird dog's lead. They look for people who have circumstance that prevent them from keeping up their mortgage payments. Therefore they may be facing foreclosure. It may also be a second mortgage that cannot be paid, a death by the owner of the home, job loss, or other family or career issues. All of these circumstances are variables that a real estate bird dog looks for and hands over to an investor who tries to sell the home. When they do, the bird dog receives a commission.
A bird dog is a good researcher and knows what the best deals are and where to find them and will use a systematic approach to find these deals.

Understanding the process of real estate, and the ways to use different resources can help you to find the best deals and make the best deals. If you aren't sure where to start, using a real estate bird dog is a good way to sniff out what is available to you. This will give you the ability to claim or give away a piece of property on the market.

In summary, the basics of bird-dogging involve having enough spare time and talent to locate real estate property that is offered at a good price by a motivated seller. A good bird dog will collect names of potential sellers and buyers and prepare a presentation to a potential investor. He or she will then collect a finder's fee from the investor for the work done.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

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Why Do I Need a Real Estate Agent?

Richard Bleuze (Richard Bleuze) — Fri, 20 Feb 2009 03:29:32 -0800

Why Do I Need a Real Estate Agent?

You might be under the assumption that there is no need to hire a real estate agent to sell your home. Many homeowners have successfully sold their homes without a real estate agent. There are also many homeowners who have not been so successful. However, there are several valid reasons for hiring a real estate agent. Especially, in this economic downturn.

A real estate agent knows the real estate market well. At least, the good real estate agent does! A good real estate agent can assist you with the selling as well as buying process. An experienced and good real estate agent can help you to locate a home that meets your specifications and budget. A good real estate agent can also use their knowledge of current real estate trends to find potential buyers for your home. At least in this market!

Real estate agents study the real estate market and the trends for your community. Most good real estate agents are able to help you get the right price from your home. Their goal is to help you set a price that will make your house sellable without taking away from your potential profits. A good real estate agent will not advise you to ask too much or too little for your property.

Sometimes the smallest changes can make the largest differences to the value and appearance of a home. After working with clients for years, most real estate agents have vast knowledge as to what buyers are seeking. Most real estate agents know what little things turn off a potential buyer when viewing a home. A real estate agent will provide you tips for cleaning and organizing your home for sale. If there are minor repairs or cosmetics that will add to the value of your home, your real estate agent will also assist you so that you can improve the likelihood of a sale.

You also might need a real estate agent in order to get the word out about your house for sale. Most real estate agents have a variety of advertising and marketing avenues that might be too expensive for you. Most real estate companies will often advertise your house in local newspapers (although, I find that ads in the paper usually do not work for the homes that I'm trying to sell). They will also include houses for sale in the local real estate books as well as multiple listings. Many real estate agents are now advertising houses online as well (I am finding this to be the best form of advertising since many potential buyers are now internet savory). Real estate agents can provide your house with the exposure you need to land a sale.

Having a real estate agent will also be helpful when the time comes to make an offer on a home or to consider an offer for your house that is for sale. Real estate agents can help you decide if the offer is right for you. In most cases, good real estate agents are also experienced in helping you to negotiate with the other party. The good real estate agent can help you to turn a no into a sale. At least they should be able to do that!

Your real estate agent can also help you with closing on your house. A good real estate agent should be able to guide you through the process of buying or selling a house from start to finish. Their knowledge of the legalities of the process will make the steps a little easier for you.

A real estate agent can be beneficial to anyone selling a house. They can help you to market your home and gain enough exposure to make a rapid sale. Real estate agents will interact between you and potential buyers. They are working for your best interests.

Hopefully, this brief article will have provided you with tips in what to look for when picking a good real estate agent to work for you!

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Tips For Selling Your Home

Richard Bleuze (Richard Bleuze) — Thu, 05 Feb 2009 12:02:24 -0800

Tips For Selling Your Home

If you're thinking about selling your home, before you make a move there are some ways that you can make the home selling process smoother and more financially rewarding.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Termite Damage And Real Estate

Richard Bleuze (Richard Bleuze) — Thu, 29 Jan 2009 14:00:58 -0800

Termite Damage And Real Estate

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Tax Advantages of Owning Real Estate

Richard Bleuze (Richard Bleuze) — Thu, 22 Jan 2009 13:44:47 -0800

Tax Advantages of Owning Real Estate

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Should You Become A Landlord

Richard Bleuze (Richard Bleuze) — Thu, 01 Jan 2009 13:52:56 -0800

Should You Become A Landlord

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Selling Your Home Fast

Richard Bleuze (Richard Bleuze) — Wed, 24 Dec 2008 09:29:15 -0800

Selling Your Home Fast

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Reasons To Stage Your Home For Sale

Richard Bleuze (Richard Bleuze) — Thu, 18 Dec 2008 15:20:01 -0800

Reasons To Stage Your Home For Sale

Staging a home is all about showing just how much space a home offers to anyone who is interested in buying it. Stagers try to make a home look larger and as neutral as possible so that a potential buyer can visualize how it can be decorated in the available space at hand. A good stager can emphasize any space whether it is large or small. A stager will bring rooms down to the basics de-emphasizing that warm and fuzzy feeling by removing any and all "clutter" to create a neat, clean space. Staging is the trend in today's real estate market, because buyers don't want to see what someone else has done. They want to image what they can do.

Staging sets a property in a class of its own, and makes the property stand out. Most in the real estate business feel that a staged home will sell faster and bring in a higher selling price. It offers more potential and draws in more potential buyers. As a matter of fact, statistics have shown that homes that are staged are on the market on the average for eleven days, while an unstaged home averages about 22 days.

Staging doesn't come without a price. A homeowner will usually be given an option of a bid or a consultation. A consultation will work with a seller who wants to do the work him or herself. This option costs less than a bid, which has the stager doing or contracting the work. And, when it comes to who pays the bill, it is most often the property owner. Bids can go for as little as $500 (beware - to low) to as high as $5,000 (make sure the stager is phenomenal). A bid somewhere in the middle is usually a safe bet.

To choose a stager, ask around. Someone you know has probably hired one. When you are ready to interview, ask the stager to bring albums of his or her work or ask to see a website. Also ask if he or she is listed as an Accredited Staging Professional or a member of the International Association of Home Staging Professionals. Not all are, but these organizations maintain a code of ethics and different levels of accreditation, and any good stager should be a member. Make sure your personality is in tune with the stager's temperament. You'll be working closing for a while and you don't need to argue about what you think is right but the stager has other ideas. A great relationship will benefit both parties.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Real Estate Forms

Richard Bleuze (Richard Bleuze) — Thu, 18 Dec 2008 12:02:06 -0800

Real Estate Forms

With ready-made real estate forms, the process of transactions is easier than every, and they are designed so that you can do them on your own or with the help of a realtor.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Real Estate Forms

Richard Bleuze (Richard Bleuze) — Thu, 11 Dec 2008 08:20:13 -0800

Real Estate Forms

With ready-made real estate forms, the process of transactions is easier than every, and they are designed so that you can do them on your own or with the help of a realtor.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Real Estate Brokers

Richard Bleuze (Richard Bleuze) — Thu, 04 Dec 2008 17:07:24 -0800

Real Estate Brokers

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Real Estate Bird Dogs

Richard Bleuze (Richard Bleuze) — Tue, 18 Nov 2008 09:17:44 -0800

Real Estate Bird Dogs

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Protecting Your Assets

Richard Bleuze (Richard Bleuze) — Wed, 12 Nov 2008 11:40:17 -0800

Protecting Your Assets

The need to protect your assets in real estate investing is very important. Investing can provide a positive cash flow, tax benefits and the knowledge that you have purchased a home that you've wanted for a long time. But many first time real estate investors jump into an investment without realizing how risky this investment can be. You need to learn how to protect your assets.

If you are investing in real estate and intend on selling it right away or keeping it for sometime, you need to check the condition of the property thoroughly before you purchase it. An inspector will probably be your best bet, even though you'll pay - an inspector can tell you after inspecting if there are any major defects that will cost a lot of money to repair. You may also see that there are too many modifications and renovations that will need to be done to meet your standards. If this is the case, it might be time to move on to another house to view or to take a look at your finances to see if you can afford all that needs to be done.

There are also many documents that should be check that include building permits, zoning laws, rental and lease applications (if you plan on renting the property), loan documents, covenants, conditions and restrictions, by-laws, title policies, inspection reports, purchase contracts, insurance documents and more. If you have trouble understanding every document you have to read, ask someone who knows about these documents to explain them to you.

If your property is a rental investment, you will need to make sure that you have cash to keep the property well maintained and to be able to pay the rent should a tenant move out. Depending on how long the apartment is vacant, you will be responsible for the monthly rent payment. If you plan on investing in a property and then selling it immediately, be prepared that it might not sell immediately, and once again you will be responsible for the monthly mortgage payment until the property is sold.

If there are things that you don't know about protecting your assets, always ask someone in the know to help you. Assets are valuable and need to be protected so that you will see your investments grow.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Preventing Downfalls With Your First Home

Richard Bleuze (Richard Bleuze) — Fri, 07 Nov 2008 08:56:18 -0800

Preventing Downfalls With Your First Home

Buying your first home will be one of the most exciting times in your life. It is also one of the biggest investments you will probably ever make. As exciting as it is, there are many mistakes that can be made, so it is wise to prepare for your first major real estate investment by knowing what to watch out for and who to go to if you need help.

There are some steps you can take before you get involved in the purchasing process. For instance, keeping a close check on your credit rating is important, because when you are buying a home for the first time, it will be the first think a lender will check. If your credit is less than perfect, it might be wise to correct the wrongs and hold off on a real estate investment. It can be done, but if your credit is poor, it is almost a certainty that the interest rate on your mortgage will be high. Also, if your credit score is low, examine the report and make sure there are no mistakes. If there are, there are ways to correct the errors and raise your credit rating.

If your credit appears to be in good shape, start looking for a realtor who will help you get a mortgage before you start shopping for your first home. The realtor will help you determine if you pre-qualify for a loan by checking your credit and asking certain questions about your income and debt. A realtor will let you know how much of a home you can afford for the money you have.

I suggest that before you start looking to buy a home, especially your first home, that you get pre-qualified for a mortgage. In fact, I would say that you should get pre-approved for a mortgage. At least in this type of market!

Make sure that the realtor that you choose is qualified and ask for references. The wrong realtor can cause big headaches and lead you down the wrong path to purchasing the home that suits your needs. A good realtor will offer you options and being will and available to show you a variety of homes in a variety of neighborhoods. He or she will guide you through the mortgage maze and make you feel comfortable, because your questions will be answered in a way that you can understand.

When you are ready to make an offer on a house that you like, make sure that your offer is attractive enough to keep the seller interested, particularly if the seller has many interested potential buyers. Make your first home buying experience a positive one by doing your homework and finding a realtor that will help you find the home of your dreams.

If you do your research and educate yourself by asking a lot of questions, you can avoid these common mistakes and make your first-time home buying experience a positive one.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Partnerships for Investment

Richard Bleuze (Richard Bleuze) — Wed, 05 Nov 2008 09:52:59 -0800

Partnerships for Investment

Partnerships in investing in real estate are something to consider because the more skills that an investor has, the more likely the investments will pay off. Obviously, in this case, two heads may be better than one. Investment partnerships in real estate usually involve a real estate as an asset and owners who make funds available for the investment, as well as construction companies or developers who make it all happen.

An investment partnership may sound simple enough, but there are specific terms in setting up a partnership that require the help of an attorney who specializes in real estate law. This is an important first step in creating a partnership to help both parties through the process and to make sure that all documentation and the structure of the partnership are in order.

The most common type of investment partnership is a limited liability company or LCC. An LCC is similar to a corporation in that it provides liability protection of the partners, as well as management flexibility and the benefit of pass-through taxation, whereby the partnership itself is not directly taxed, but passed on to the partners. The partnership in turn pays its profit earnings to the partners as income, wages and profit payments, with each partner paying taxes on their individual shares of profit. If the partnership takes a loss, each partner can then deduct their share of the loss from their personal income taxes.

In most states, an LCC can be established on the Internet for a fee, but an attorney should be the one to gather detailed operating agreements. Operating agreements contain information about the amount of the company owned by each partner, the amount of capital, property or services provided by each partner, how profits are divided and what will happen in the event one of the partners leaves.

In order to maintain a good partnership, keeping records is essential, and partnering with a real estate firm is a good idea because they will have the experience and knowledge in managing the development process and will be able to provide the proper paperwork necessary to evaluate and structure of the partnership. For example, an equity partner is often asked to sign a guarantee on any new debt that enters into a partnership.

Many individuals who are looking for a partner start by turning to family and friends. This does not preclude the need for paperwork because when it comes to investments and the decisions that go along with them, paperwork must be available to refer to in any given good or bad situation.

Individuals who are involved with the active side of the investment may need to start their search for a partner among friends and family. However, it is important for investors to keep in mind that the presence of a pre-existing relationship does not trump the need to have good paperwork.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Options for Improvement with Refinancing

Richard Bleuze (Richard Bleuze) — Mon, 03 Nov 2008 08:10:09 -0800

Options for Improvement with Refinancing

If you own a home and would like to improve the way it looks, you can take the asset you have and make it greater by remodeling and making improvements that will increase your investment by increasing the value of your property.

To do this, you need an understanding of the basics of home improvement financing like qualifying for a loan, points and interest rats, mortgage lenders, contractors, as well as the options you have when it comes to financing home improvements. The process is much like that of financing the purchase of a home.

To qualify for a loan you should talk to lenders about your options. You might think about starting with a mortgage broker because he or she will have the most loan options available. This person is there to help you understand the choices available to you and what trade-off are involved. He or she can also pre-qualify you for one or more loans. Points and interest rates are a part of most loans. Points are a fee attached to the loan and are a percentage of the loan amount - one point equals one percent. Points cover the set-up expenses of the loan. The interest rate is an additional rate that you pay on the amount loaned and are set according to the type of loan you qualify for and the current real estate market conditions.

A mortgage lender is the source where your loan originates from and can be a bank, specialized lender or insurance company. Mortgage lenders are likely to have a wide selection of loans available for you to choose from. A specialized lender usually specializes in one or two types of loans and will usually offer competitive rates. Options from all of the above lenders can include variable versus fixed interest rate loans or secured versus unsecured loans Contractor home financing is also an option. In this case, the contractor hired to do the work on your home will use an established relationship with a mortgage lender to speed up the processing of your loan.

Other specific financing options for home improvement are savings - using saved money to renovate or improve a home; credit cards that offer cash advance checks, often associated with a no hassle approach; cash-out refinancing, a financing tool that works if you have equity in your home and can borrow against it; home equity line of credit, most popular way to finance a home improvement and is tax deductible; home equity loan, similar to home equity line of credit and value added loans, new and popular type of loan that basically applies when improvements will make a substantial impact on the increased value of your home.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Loan Pre-Qualification

Richard Bleuze (Richard Bleuze) — Sat, 01 Nov 2008 09:26:34 -0700

Loan Pre-Qualification

Loan prequalification determines through a process if you have the financial ability to invest in real estate before you actually make the investment. It will give you the go ahead by pre-approving you for a certain amount of money on loan to purchase a home. The pre-approval is always documented by a letter from a lending institution that reports on how much money you, as a buyer, will qualify for. When you have pre-qualification, you are in a better position to negotiate a better price and a more reasonable mortgage payment plan with the seller.

To qualify for a prequalification loan, the process isn't too involved. A loan officer will ask you questions, and your answers might require documented proof. An example of documented proof is proof of income and debt that will help the loan officer determine your debts, assets, credits and employment status. Once the loan officer has reviewed the information you have provided, he or she will provide you with an estimate as to how much money you can spend on a new home. This will be presented to you in the form of a letter and will enable you to have a better chance of buying a home that suits your needs. A prequalification status will also help you determine what your monthly payments will be and what you will need for a down payment. Online mortgage calculators are a great way to determine how much you can afford, as well as determine what your monthly payments will be. So before going to a lending institution, go online and get an idea of where you send and what your changes are of pre-qualifying. It is important to note that although a prequalification letter is a valuable asset, it does not guarantee that you will get a loan. The true loan process is long and involved, not to mention tedious even if your credit is perfect and your income is adequate. However, because the mortgage approval is long and necessary to satisfy a purchase contract, it is always to your advantage to obtain a pre-approval letter when you are ready to purchase a home. It will save you time and give you a greater selection of homes you can choose from.

In fact, in today's market, I always suggest that my buyers get in addition to a loan pre-qualification letter a letter from a mortgage lender stating that the buyers have been pre approved for a loan and not just pre qualificated for a loan!

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Events Happening In Temple City This 2008 Fall

Richard Bleuze (Richard Bleuze) — Fri, 24 Oct 2008 13:32:51 -0700

HARVEST HOEDOWN & CRAFT FAIR
October 25
Temple City Park
9701 Las Tunas Drive
10 a.m. - 4 p.m.

***************

HALLOWEEN CARNIVAL
October 31
Live Oak Park
10144 Bogue Street
6:30 - 8:30 p.m.

***************

Blood Pressure Screening
NOVEMBER 18
Free Blood Pressure Screenings
Live Oak Park Community Center
9:30 a.m. - 10:30 a.m.

****************

HOLIDAY DONATION DRIVES

SOCK-O-RAMA & MORE and
SANTA'S PAWS & CLAWS

Donations accepted at City Hall, Live Oak Park Community Center & the Civic Center

******************
LIGHTS ON TEMPLE CITY
December 7
Temple City Park
9701 Las Tunas Drive
3 p.m. - 8 p.m.

****************

HOLIDAY HOME DECORATING CONTEST
Applications available November 3 on line and at City Hall.
Pre-registration required

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Knowing When You're Ready To Buy

Richard Bleuze (Richard Bleuze) — Wed, 22 Oct 2008 12:10:28 -0700

Knowing When You're Ready To Buy

It's easy to say that there are millions of people looking to buy a home, because no matter what the real estate market is, it almost always makes sense to buy rather than rent a home or an apartment.

Beginning a search for a home is a good idea if you have money set aside for a down payment and closing fees. A down payment usually needs to be 15 to 20 percent of the price or value of the property - whichever is lower. If you can manage more of a down payment, it helps because the more you put down the less you will have to finance. If you don't have the 15 or 20 percent to spare, then you might look into purchasing mortgage insurance. However, this will cost you more in terms of monthly payments.

Closing costs generally run about five percent of the value of the property. It would be wise to obtain an estimate before you make a purchase. Although an estimate won't be exact, it will be close, and you will have an idea of what you will have to set aside for closing fees.

Know exactly how much of a home you can buy before you decide to buy one. The house that you choose and the mortgage that you take should be no more than 35 percent of your total monthly income. Anymore than that puts you in a risky situation and will not leave much emergency cash for unforeseen expenses. You should also have extra set or figured into your budget for utilities, homeowner's insurance, property taxes and maintenance. If you can't account for these expenses in your monthly expenses, then it might not be the right time to buy.

Another key factor in knowing if you are ready to buy property is knowing what your credit scores are. Look over your credit report and if it is less than perfect try to amend any mistakes you see. Any credit rating that is low doesn't necessarily mean you will not get a mortgage, but it does mean your interest rate will not be as low as it could be. If your credit score is low, and you don't want to pay a high interest rate, put off buying for a year or so in order to improve your credit scores. You have to make a commitment when you buy a home. It might be that you don't go out to dinner so much or take so many vacations. It means that you have to do your research and know how much money you have to save and budget for a new home. You need to know the neighborhood you are moving to, and if you have children, you need to know how the schools in the area rate. There's a lot to know when buying a house, and when you know it all - you'll know you are ready.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

Knowing When You Have the Deal

Richard Bleuze (Richard Bleuze) — Mon, 20 Oct 2008 14:18:58 -0700

Knowing When You Have the Deal

Knowing exactly what to invest in when dealing with real estate transactions will determine a good or bad deal. When a good deal is made, it means that the seller, buyer and agent all walk away feeling as though they have won or made a bargain. Basically, when you are closing a deal (and each one is different) is when you know you are close to having a deal. Closings are tricking because they can go smoothly or they can be racked with controversy over small issues. After all there is a seller involved and a buyer anxious to seal the deal. A closing takes about two months to wrap up from beginning to end. It must go into contract, be submitted to a Board who will issue a mortgage and finally end with the closing. The contract must be signed and the buyer will have his or her lawyer's name to the seller's attorney. The attorneys will then begin discussion of the contract.

The lawyers should be lined up well in advance and general terms of the contract should be worked out like price, approximate closing date and what personal property is included. Another component that will make or break a deal is the financing involved, meaning that the loan has to be right with specific terms and needs specified. The right interest rate is also part of a successful deal because you should always make the buyer feel that they are getting more for their money and the seller feel that they have profit to put into their next investment.

There should be no costs or fees attached to the loan that the buyer isn't aware of. Make sure you have gone with a lender that has offered the best loan deal available to keep everyone happy. Also make sure that the property is in excellent condition at the time of the closing. The floors should be clean and everything should be in working order. Have the property inspected to make sure the property is pristine. Otherwise, adjustments have to be made to the contract before the final deal is sealed.

A closing should take about an hour or so. Papers are signed, copied and distributed. Nothing can happen without both parties signatures so on the day of the closing make sure both parties are prepared to attend. Once the closing is over, and everyone is happy, you can consider the deal done.

In most states, like California, they use escrow companies to close the deal rather than attorneys.

ABOUT THE AUTHOR:

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com