What is Real Estate

Writen by A. Mark Argentino

Should I sell my investment property and cash out today - Has the Mississauga or Toronto market peaked? I get asked this question often. There is no simple answer.

I know how you feel that it's tempting to cash out, prices are so high. This is a difficult question to answer precisely as really, nobody can predict what will happen in the future. Many are now thinking that the market may have peaked in the GTA, but only time will tell.

There have been a few articles written in the press lately about the over-abundance of condos currently on the market and more coming on stream in the next 2 to 3 years. This could potentially create a supply problem and prices could soften in the condo market. Regardless, if you have equity in your investment property, then I would understand that you may wish to take out the equity and move it to other investments that may give you a higher return over the next 5 years or so.

Over the past 3 to 5 years or so the rental market in Mississauga has been very soft and I have noticed the quality of tenants has dropped significantly. This is due to our extremely low interest rates and many people that would have otherwise rented, purchased instead. The vacancy rate in the GTA is very high and this has impacted investment properties.

I help clients with many of their rentals per year and I am finding it much more difficult to find good quality tenants over the past few years.

Even if we have a correction in our market, I don't think it will be too significant. We are not in a boom similar to the investor fuelled boom of the mid to late 80's so I think (and hope) that we will not ever see the bottom fall out of the market the way we did in '89 to '95.

So there you have it. I am sorry I cannot predict the market more accurately for you. When push comes to shove, you will have to make the final decision.

Past history indicated that we may be near the end of a 10 year increase and this may be the time to unload your investment property.

You must be the final judge of whether or not it is time to sell your investment property, but certainly a healthy profit today is better than a possible loss of profits in the near future.

Mark Argentino is a Professional Real Estate Agent and has his Professional Engineering degree. Mark works and resides in Mississauga Ontario. He specializes in helping people sell and buy homes in the Mississauga area. His website is the most authoritative source of real estate information when you are buying or selling a home in Mississauga. You may read more articles, tips, reports, newsletters and in-depth real estate information, visit http://www.mississauga4sale.com

Writen by Sue Mueller

Assuming you have saved money for a down payment and that your total income will allow you to make a house payment, you are now ready to start the home buying process.

The general rule of thumb concerning your readiness is to calculate a percentage of your income for a mortgage payment. For instance if you bring in a monthly NET income of $1500, you may use 35% of that or $525 for housing. I say safely, because based on the rest of your living budget, that should leave you enough for other expenses.

A common Living Budget should read like this: 35% housing, 15% debt, 15% transportation, 25% other living expenses, and 10% savings.

The estimation above would allow you to buy a house with a $525 monthly budget, which should also include insurance and taxes for the month.

Generally, loan institutions require that you have 15-20% as a down payment.

The first step, before you start calling realtors is to visit your bank and talk to the loan officer. Some basic questions to ask are:

1. What are their interest rates?

2. Are there penalties for prepaying your loan?

(You never know when that inheritance will arrive!)

3. Do they have any "first time home buyers incentives"?

4. What are down payment requirements for the loan?

5. Is interest on the mortgage loan fixed?

6. Is a co-signer needed for your loan to be approved?

Also prepare a personal financial statement and the last two years tax returns.

Don't take the baby or the children and do it over your lunch hour. It is best to call and make an appointment, allowing enough time to get all your questions answered.

If you are having difficulty with your bank, shop around. They might change their mind if they think you will move your business next door. There are also some opportunities available for lower income families.

When you are finished with all this preliminary work, you are ready to call realtors.

There are two reasons for doing all this work before house shopping.

First, realtors will love you for it and work aggressively to help you find a home that not only fits your needs, but also your budget. They feel you are wasting their time otherwise.

Second, if you find your dream house and decide to put an offer on it, most contracts are written with a "14 day clause". That means you have to have a "letter of intent to loan" from your bank within 14 days or loose the contract.

Typically getting a bank appointment, getting the day off (if needed), and gathering up all the information can take 1-2 days or more. Then the bank has to put your loan proposal before their Loan Board of Officers, which only meets once a month. This could easily put you behind in reaching the 14 day limit. Also not that 14 days does not mean 14 business days. It means 14 days period! So realize it means 10 banking days with 4 days off for the weekend.

This should get you on a good start towards buying your first home. Happy Shopping.

Sue Mueller is a parent and fosterparent to over 25 children over the years. She shares her insights at http://www.Positive-Discipline-Parenting.com

Writen by Lanard Perry

If you are on the brink of despair and are thinking about giving up your real estate license don't do it; at least not yet. You worked too hard to get licensed and with the right tools you might be able to turn things around and have the success you dreamed about before you got licensed!

So, instead of doing the same old things for the same unsuccessful results, do something different. For starters, start with a good real estate marketing tool.

Proven Marketing Ideas.

Why reinvent the wheel when there are some pretty good marketing tools already available, and at bargain basement prices considering the money you can make using them? For example, a farming expired listing script is one of the best tools that an agent can have in their marketing tool kit! And they don't all cost a lot of money!

The right marketing tool can serve as a template for generating targeted, focused leads... one after another. The tool leads to listings, which then become sales. And once you perfect the template you can repeat the process over and over to create a profit generating machine, and almost effortlessly.

Here's why it's so important to have a good real estate marketing tool. The right tool can help you generate leads sales and listings. The more listings you have the more sales you'll make.

And the more sales you make, the more referrals you can get to secure more listings. One feeds the other and in the process generates income. And isn't that the reason you're licensed to sell real estate - to make money?

Expensive Does Not Mean Effective

Effective marketing is easier than most real estate agents make it out to be. Some make it complicated and will buy overpriced marketing tools and associate quality with cost. However, I'm sure you know, even if it's subconsciously, that just because something costs a lot of money doesn't mean it's worth the money you spent for it.

For example, have you ever gone to a clothing store to buy a suit and decided not to because you felt it was overpriced, only to see the same suit in the same store offered a week later for half price?

Well, the same thing applies to effective real estate marketing tools. Expensive does not necessarily mean good and effective!

The Lazy Agents Way To Unprecedented Success

When I was actively selling real estate I fully embraced any tool, or strategy that I could comprehend that would make me more successful. In that respect I figured out a way to market to 10-20 prospects a day in an hour or so, and did it 5 days a week. In a years time I prospected to more sellers than most agents did in a life time.

Although I thought of it as a lazy way to get business I wasn't lazy, but very focused, determined and driven to do it in the least possible amount of time.

I realized early on that looking and being busy was not the same as being focused and productive. And with my particular real estate marketing tool, which was an expired listing system, I took my business to the next level and averaged more listings in a month than many of my peers did in a year.

You too can take your business to the next level, but only if you have the right tools for the job. Want listings? Learn how to get them with a listing system! Want to close on more leads. Brush up on your closing skills with a tool that helps you improve that particular skill.

In the end it will be the simple things that make the difference.

Lanard Perry, author of a real estate marketing system, shows Realtors how to average 1 or more listings a week. Visit him at Real Estate Marketing Talk for more marketing ideas.

Writen by Randy Wilson

Ask anyone with a financial degree what area of investment is consistently fair and most of them will tell you Real Estate. The Real Estate Market is full of Business Opportunities for people like you. Most people, however, are unaware of the burgeoning market of the Business Opportunity in Real Estate.

There is the obvious licensed real estate agent. If you are already licensed and not investigating the Online Opportunities available, you are lagging behind the field. Online Real Estate is a burgeoning field and likely to expand over the next decade.

People who look for Online Real Estate Agents are looking for a sale. Even in this telecommuting age, people relocate all the time and are in need of local Real Estate Agents in the area to which they are going. Most people facing relocation will do some advanced research and you could be the one they find.

Of course you will have to be an established Real Estate Agent and be able to present yourself effectively online. There are many web sites that have free listings for agents by area and are top of this list for Real Estate keyword searches. Registering with one of these sites would help draw clientele to you.

There is also the buy and sell Real Estate Business Opportunities. Many private citizens, not licensed real estate agents are moving into the real estate venture by buying and then reselling real estate properties. Buying a distressed property, doing the necessary repairs or rebuilds and then reselling the property privately is becoming ever popular.

With this particular type of Investment Real Estate, you will have to be mindful of tax implications and have a basic knowledge of contracts and financing. Having buyers with pre-approved financing will be helpful to you as well. Be careful and read the entire local and state laws regarding buy owner situations so you don't get stuck with a bad deal.

Commercial Real Estate Business Opportunities require a little market research. If you are near a growing area or a metropolitan area, Commercial Real Estate may be even more profitable than personal property. Again, you will have to research the tax and financial end of these kinds of transactions. No one wants a surprise at tax time.

Rental Property is another way of How to Start a Real Estate Business. This type of investment will require either the help of a property manager or your personal attention more than any other real estate deal. Someone will need to be available to manage the property, collect rent and see to repairs. Depending on the type of Rental Property you are interested in, commercial or personal will depend on your investment and personal requirements.

Your research before going into this type of investment should include what transactions would require you to have a license, what the market is like in the area you are looking at, and tax requirements. Any Real Estate that is not kept for personal use is considered business or investment real estate and will be subject to tax on any profit you have acquired. Keep close track of your expenses, as they will increase the total basis you have invested. You may want to purchase a Real Estate Business Plan before Starting this Real Estate Business.

Real Estate Business Opportunities are flexible and highly profitable. There are many fields in Real Estate, including time-shares, rentals, sales, re-sales, and even Vacation Homes. Finding the right opportunity for you, either as a licensed Real Estate Agent or a Private Reseller, should be easy. Remember that Real Estate, unlike most ventures, may require some up front capital. Be aware and be prepared for a Profitable Real Estate Business Opportunity.

© Copyright Randy Wilson, All Rights Reserved.

Randy has dozens of home based business articles at Profitable Home Businesses such as Unusual Money Making Opportunities.

Writen by Ashley Andyshak

For work convenience, for pleasure, or for a number of other reasons, many people today are considering a second residence. The residence of choice for many of these people is the condo. From the beaches to the mountains, from the Northeast to the shores of California, there is a plethora of condos to choose from in the United States alone. The community atmosphere of a condominium neighborhood is attractive to many people, as are the many amenities that come with owning a condo. There are a number of new condos for sale in all areas of the country, and they can be found by doing a little research.

First of all, talk to your local real estate agent. Agents have a wealth of information about the market at their fingertips, so take advantage of all the resources available to you. Your agent can point you to the new condos for sale that best meet your needs with regards to both amenities and finances. A new condo can even be constructed especially for you and your family, depending on the regulations in the condominium development in which you wish to build. Many condo communities have regulations regarding what can and cannot be built on the property and what kind of additions and renovations can be made afterwards, so be sure you find out all of this information before beginning any significant planning. Your real estate agent should be able to provide all of this type of information for you either through prior work with the condo developers or by contacting the community directly.

Condo developments are usually organized in a community atmosphere. While everyone in the area may not necessarily know one another, they share the feeling of being in a small town separated from the rest of the world. A typical condo development will contain meeting and event halls, restaurants, and sometimes even golf courses and other such amenities. This type of environment is ideal for some people, and there are a variety of these small communities being built all around the world in various locations. No matter what your interests or needs, there are sure to be some condos for sale that will be exactly what you are looking for.

New condos for sale are popping up all over the world, most recently in places such as Bangkok and Singapore. If you are considering a cross-cultural vacation home, or simply need a way to increase your traveling capabilities, perhaps you should consider one of these condos. Owning an overseas condo could mean different regulations, financial and legal matters; so check into all of these issues and be sure you know your rights as well as your responsibilities when purchasing overseas real estate.

There are new condos for sale coming onto the market regularly, and one of them is sure to be a perfect match for you and your family. By doing some research to find the condo community and location that is right for you and by enlisting the help of a certified real estate agent, your dream of owning a new condo can be realized.

Inside Los Angeles Real Estate is a network entirely devoted to real estate information. The entire Inside Real Estate network has more than 100,000 pages of real estate for cities allover the United States. Inside Real Estate covers several topics from the basic "how to's" of real estate to city-specific real estate information.

Writen by Aldene Fredenburg

Realtors and real estate developers around the country are bemoaning the fact that the real estate market has slowed down in recent months. Rising interest rates, shortages of building materials, and the weather hurricanes Katrina and Rita specifically have served to stop and in many places reverse the upward trend of both existing home sales and new housing starts.

Wonderful! What has been a boon for real estate brokers and developers has not been so good for people at the bottom of the economic scale. Many workers who five years ago could have bought a home of their own have been priced out of the market; both commercial and residential real estate development has bulldozed distressed properties that provided housing for poorer people and displaced those people in the process; and gentrification, the process of rehabbing existing homes and converting industrial buildings for upscale lofts and condos has shifted the demographics of entire sections of cities, in the process also displacing poor people in favor of the well-to-do.

The financial consequences of the recent real estate boom have yet to be fully seen. Foreclosures are up as homeowners with variable mortgages see their monthly payment rise along with interest rates, while people who took on interest-only mortgages watch in dismay as the value of their house falls, leaving them with more mortgage than home.

Is there a silver lining to this looming cloud? You bet! Falling prices mean more people will be able to buy homes; a slow-down in real estate development may give communities time to take a breath and reassess just how they want to use the land and resources of those communities; and consumers, thanks to Suze Orman and other TV and print financial gurus, are finally educating themselves on the ins and outs of the mortgage game, and with some knowledge under their belts are beginning to make better decisions for themselves.

Maybe we as a society need to take this time to really examine what housing means in this country; to look at the different forms of housing– single-family homes, condos, multi-family rental units, even cluster and cooperative housing – and try to come up with a comprehensive plan that will meet the needs of everyone. Maybe we need to reexamine the recent practice of building bigger and bigger homes on small pieces of land, using up valuable resources, while ignoring deteriorating housing in the poorer sections of towns and cities. And while we're at it, we need to look at the effect of real estate development's impact on the environment.

The real estate boom of the past five years was fueled at least in part by greed; if we create an inclusive housing policy that serves to meet the needs of rich and poor alike, in an environmentally and fiscally sound way, who knows? The next real estate boom may be sustainable for decades.

Aldene Fredenburg is a freelance writer living in southwestern New Hampshire. She has written numerous articles for local and regional newspapers and for a number of Internet websites, including Tips and Topics. She expresses her opinions periodically on her blog, http://beyondagendas.blogspot.com

Writen by Rick Otton

Property Investing: A Buyer's Secret Weapon When Purchasing Real Estate

My friend, Roger, does property investing and is a licensed real estate agent. Recently he looked at a property in another state that was probably worth $225,000.

After some rapport building, the agent told him that he may be able to purchase the property for around $200,000. Roger loves property investing and he follows fundamental rules like doing his home work. He still thought the property was expensive and did not pursue it further. About a month later, Roger received a call from the real estate agent.

The agent said that the seller would probably now accept about $180,000. The agent explained that the seller had paid about $180,000 for the property eight years earlier and he just wanted to get his money back. Roger was surprized that the seller had not factored in costs of ownership.

It also happened to be April Fool's day and Roger sometimes he has an off beat sense of humour about property investing. He said to the agent, look tell the seller I'll pay $150,000. Roger also said he would sign a contract now and fax it to the agent immediately. After that was done the real estate agent rang him back the next day and said, "I can't believe it....you've bought the thing. Had I known he would have taken that price I would have bought it myself!"

There are a couple of lessons in this example. First do your homework when you're property investing. That means you know where bottom of the market it is-before you meet the real estate agent. Secondly, do some rapport building with an agent. Now some of you may be wondering how Roger could make an offer of $150,000 to the agent. Roger presented himself as a serious buyer.

Roger's secret weapon was that he didn't care whether he purchased the property or not. In fact when property investing he never gets emotionally involved. He told me he'll make an offer on a property, not caring whether he owns the real estate. This is a secret weapon of many accomplished property investors-thought at times it can be difficult to put in practice.

I've found when property investing that if a seller wants to sell to me today, when I make an offer it's the best I can do on that day. Just as Roger's best offer was $150,000. More often then not, this strategy will enable you to purchase property at a discount. Bottom line it's important not to get emotionally attached and chase real estate.

Rick Otton is the director of We Buy Houses Pty Ltd. He has been property investing full time for 14 years. Rick has completed over 351 property transactions in Australia and the United States.

Rick specialises in creating positive cash flow through a variety of strategies he perfected in the United States and adapted to Australian conditions. He sells home study courses on vendor finance, one year mentoring program as well as a yearly 3 day boot camp on the Gold Coast. Go to http://www.rickotton.com for more property investing information ring 1800 003 588 in Australia.

Writen by Bill Young

Short sales are all the rage in creative real estate circles today.

Books, tapes, and courses are being offered everywhere, purporting to show investors how to make "huge profits" in foreclosure investing, especially for those with no cash or credit.

What exactly is a "short sale?"

A short sale occurs when the bank let's a distressed homeowner, who owes more than his property is worth, settle up by paying less than the total owed.

The investor makes his "huge profit" by helping the homeowner negotiate the short sale with the bank, then picking up the property at the lower pay off amount accepted by the bank.

Let's look at the reality of short sales.

First of all, short sales are difficult to pull off, requiring negotiations with many layers of bureaucracy.

Frequently, the bank you are sending your payments to is not the bank that owns your loan. In fact, it may have passed through the hands of two or more banks. Therefore, more than one bank will be involved.

If the loan required private mortgage insurance, as virtually all mortgages with less than a 20% down payment require, the mortgage insurer is also involved in the negotiations.

The objective for the investor and the home owner is to prove to everyone that that the homeowner is basically destitute and will not profit from the reduced price and the home is worth less than the amount owed the bank.

It is also very time consuming. It is not unusual for it to take weeks for a short sale to be successfully negotiated.

In fact, a realtor friend of mine said he loses more deals than he wins, trying to sell homes on short sales because the houses sold at the foreclosure auction before the short sale process was completed.

Even if a short sale is completed however, there are problems.

The home owner's credit is seriously damaged. He will also owe income tax on the amount of loan that is forgiven! The IRS considers forgiven debt to be income and demand the taxes owed on the forgiven amount to be paid in cash with the homeowner's next tax return.

The investor will not get a "huge profit" on a short sale, in most cases.

The reason is that virtually all purchase money first mortgages issued by banks with less than a 20% down payment carry mortgage insurance; demanded by Freddie Mac and Fanny Mae, to be saleable in the secondary market.

Since the bank is protected by the insurance and the insurance companies themselves have a vested interest in the short sale negotiations, can you imagine any scenario which would make sense for a bank insurer, to agree to a drastic reduction of the mortgage amount?

The bank doesn't care because they are protected by insurance. The private mortgage insurer is not going to let the bank write down the mortgage because that increases the claim they are going to have to pay!

The actual discounts that I have seen and have heard of from other investors is rarely more than 10-12%. In one case, the discount was $4,150 on a $75,000 loan!

Even at the reduced price, the buyer will have to put down cash and qualify for a loan to buy the property, which he may or not be able to do. The "short sale gurus" will tell you this is an excellent way for you to make money on real estate with no money or credit.

They advise an investor to contract for a property, negotiate a short sale and then "flip" the contract to another buyer for a higher price without owning the property himself.

As we have seen, with the actual discounts in the 10-15% range, this is a highly unlikely scenario.

In summation, the short sale is not the panacea for "huge profits" to be made by those with no credit or cash. It only leaves them "short" of the cash they spent to buy those courses!

Copyright 2005 Bill Young. Bill is a former bank loan officer and is an experienced real estate investor. He writes and lectures on many aspects of real estate investing. He and his team have developed an automated, Internet based investment system that produced 52 desperate homeowners who Gave them their properties over an 18 month period. To learn more about it, go to http://MotivatedSellersOnline.Com/APS

If you are facing foreclosure, get help with a free, 5 Part Mini-Course, "How to Stop Foreclosure" http://301url.com/stopforeclosures

Writen by Bill Guerra

Welcome to real estate investing; new and seasoned investors alike. In this article you will learn the efforts and rationale it takes to birddog and wholesale. I found this is the best way to begin or to continue your investing career to make money with very little cash and minimal risk. It is how I started my career as an investor; it will work for you as well!

Reiplace.com was an excellent site for this investor to learn. After researching most every real estate investing site out there online for six solid months I came to that conclusion.

I hope you find these suggestions helpful. They are not difficult; you don't need to spend $5000 bucks for a mentor, nor attend every one of the latest in-town seminars, nor do you need to buy 15 different courses your first month in the business. There will come a time later for more in-depth learning.

This is how to get the information and knowledge to make money bird-dogging and wholesaling.

A commitment to not quit, no matter what! Be prepared to come to grips with all the negative self-talk you may have, like "I really can't do this, the guru's can but not me." You have to learn to believe you can do this business, really believe.

A commitment to work hard and diligently. A very successful person said, "do something in your business everyday, even if it's small." These are words you want to live by.

A commitment to post on this board, your successes, failures, hopes, dreams, and every question you think is too silly and too embarrassing to ask, the latter are the most important ones. And I don't know why, they just are.

I bought Steve Cook's book "Wholesaling for Quick Cash", read and reread it about 12 times, it's invaluable.

Orginally I had the links in this article but due to this sites restrictions I had to remove them but they can be found on my website under "arcticles" listed at the bottom of this page.

Perform "searches" for all your investor questions. Many of your questions have already been posted along with a string of replies. Do searches of the wholesale personalities who have been successful wholesalers at Reiplace.com, like Steve Cook, William Tingle, Bob, Eddie, Eric and many others. You will find the "search" button is the labeled "search" at the top of the below link (our newsgroup page) in tiny blue letters.

Find and read "success stories" on this site and others like it to read. This kept my spirits up during the initial rocky climb the first year.

I recommend purchasing William Tingles "Extreme Marketing" course. This course will help you learn how to market for, and find motivated sellers and have them calling you! Which will be key to your success.

Stay focused on bird-dogging and then wholesaling. Read all you can on these two specialties. The reason is it brings cash in NOW, this is what a majority of new investors need. There will come a time for other specialties of investing. Speaking from this investor's experience it's not in the beginning. So prevent yourself from getting side tracked on other specialties the first 8-10 months, regardless of what other new investors tell you. I felt this vital to mention as most new investors are trying everything and eventually get burned out because they cannot focus and make money in one specialty.

Stay focused, on bird-dogging and wholesaling, did I mention that :) It's about learning and educating yourself. When you're new; bird-dogging is always the best place to start I was told to forget about making money for myself initially. "Say again???" Yes, learn how and find that first deal for someone else. Once you are able to find deals with the help of a very patient seasoned investor it will cut your learning curve work and time down drastically. So help them first. Then you can wholesale to investors. They like that even better. As you are bringing them a signed contract they can simply close on. You will need less and less of there time, they like this. This is the foundation to mutually beneficial and wonderful friendships and partnerships with your seasoned investors. Birddog first, with a mind on wholesaling second. That's what worked for me. By the time I bird-dogged two deals I already had enough "NO's" from seasoned investors as well as practice to then wholesale my next 40 plus contracts.

After several new investors kept asking me how I bought so many houses 45-75 cents on the dollar without the Multiple Listing Service (MLS), which commonly investors use. I myself wrote an e-book on "How to Talk with Sellers" to address just that.

The above reading recommendations and courses simply put, worked for me. Proper knowledge and education in investing are absolutely mandatory. Let me pose a question: do you know how to reduce risk and fear, which so many new investors have to the point it freezes them from doing there first deal? The answer knowledge and education. At night I read all I could find on bird-dogging and wholesaling. During the daylight hours, I was driving in subdivisions that Steve discusses in his wholesale book. It's so funny that it took me so long to find the goldmine areas Steve wrote about. But you just don't quit. I remember a conversation Steve and I had it went something like this:

"Steve I cannot find the subdivisions or houses you talk of in your course! Las Vegas is too new of a city anyway! Maryland is hundreds of years old of course you can find them there!"

Steve replied in his s-l-o-w drawl "there out there Bill, you just have not found them yet."

He was right, and I finally found the subdivisions he terms "goldmines." Then I would post on the site, "William, I have been marketing and marketing like your book says and still nothing!" He would reply, "okay, great…now just don't stop marketing, it will come." I was exasperated, "is that all he is going to say, just don't stop?" But he knew what I didn't. Then, finally motivated sellers began to call me asking me to take there houses again and again. Finally, all the research, reading, posting, sweating, stressing scrimping, marketing, running, wild goose chasing, defocusing, refocusing, hoping, and praying all paid off. And paid off it did! One of my first wholesale deals netted me $30,750.00 I simply had the title company wire it into my bank account. Then I posted "oh…well…I guess it does really work huh!?!" I was able to pay for my daughter's 10k medical bill…cash, no payment plans for five years, no collection agencies ect. That is what investing can do for you. And its things like this that reminded me "it certainly was all worth the effort." Take these suggestions literally, apply a ton of elbow grease, and never ever quit. Then we will see your posts saying the same thing "oh, I guess it does work!" As you are getting 1, 5, 10, 30, and 40 thousand dollar assignments again and again. Now that you know how to make money wholesaling, it's on to more advanced and equally profitable forms of investing!

Blessings,
Bill Guerra (Bill in Vegas)
www.WillBuyAnyHouse.com

Bill was a nurse who got tired of the rat race and wanted to succeed and become his own boss. He did, and after several houses his dreams became a reality.

Writen by Luke Lu

There are many reasons for foreclosure and many people have faced it. In some cases, the foreclsure was simply an issue of poor money management. In others, circumstances took over. Medical issues, layoffs and other financial problems may have made payments impossible and foreclosure inevitable. For whatever reason, the deed is done and it's time to start taking positive steps toward recovery.

Some people think that a foreclosure means they'll never again be in a position to purchase a home. That's not true, and there are even some steps you can take to get the process started.

First, realize that you're not alone. Thousands have faced bank foreclosures and survived. This is serious, but it is possible for you to take the next steps and move on toward eventual home ownership again.

Next, you need to get copies of your credit reports to see what damage the foreclosure has done. If you had excellent credit before, you're going to see a marked difference in your credit report after foreclosure, but don't despair. Take time to carefully read your report. If you find errors, point those out to the credit reporting agencies that compiled the report. You've already got enough problems with your credit rating because of the real estate foreclosure – you can't allow errors to stay on your report as well.

Foreclosures and most other negative credit information will remain on your report for seven to ten years. But keep in mind that many creditors don't look at individual listings on your report, especially if those are more than a year or two past. Some only look at your credit score, which is a compilation of all credit activity resulting in a numerical score. That means that some creditors may be more lenient even after foreclosure if your score is good. Concentrate on getting that score back up. Apply for one or two secured credit cards as soon as possible after the foreclosure and start making regular charges and payments. Each of those will make a positive impact on your credit score.

Many people who have gone through foreclosure or bankruptcy can benefit from credit counseling services. Some agencies offer services at free or reduced rates and can help you negotiate payment arrangements for outstanding debts. Even if it's too late to stop the foreclosure, this could help you with other bills. You could get your credit back on track much more quickly than if you simply let the process run its course.

One of the most important steps you can take toward owning your next home after you've gone through a foreclosure is to get your finances on track and start saving. You're going to need a bigger down payment if you want to buy another house after your foreclosure. Make arrangements to put a set amount of money into savings every pay period. Create a budget that you can live with and that you can stick to – then stay with it.

If it was simply a case of poor spending habits that forced you into foreclosure in the first place, consider a buddy system. A spouse, parent or sibling makes a good "buddy." Simply make a budget and then make a commitment that you'll discuss any expenditures with your buddy before you make them. This has a couple of purposes – it makes you immediately accountable to someone else for your spending habits and forces you to take a step back before you spend the money. Often, you'll find that you didn't really need the item anyway.

Foreclosure may seem like the end of the world while you're in the process. While it's a very serious issue, you can recover. Just make sure that you pay attention to the old adage and learn from your mistakes.

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Writen by Kimberle Balsman

A really nice, albeit frustrated, man emailed me recently and asked for a straightforward answer to the eternal question, "How much commission is paid to a real estate agent?" He had been trying for some time to get an answer to his question with no success. After reading my articles on Ezine, he emailed me and asked what the standard commission rate was for real estate agents nationwide.

Ironically, during my tenure as a Century 21 agent, I was frequently asked the very same question. I assumed, at the time, that the question was posed as part of the rate negotiation for the listing contract. I now realize that the general public really has no idea how real estate commissions work. So, I thought I would share with my readers my answer to the email.

The truth is that there is no "standard" commission rate. In fact, in most states, the law and/or the Real Estate Commission prohibits any attempt by real estate agencies to set or fix real estate commissions. Real estate agents can charge any commission they want, so long as the public is willing to pay it. Thankfully, competition is a factor, which keeps commission rates "reasonable."

Realty companies will often set minimum and maximum commission rates for its agents, leaving agents some negotiating room. For example, I could sign listing contracts for any commission 6% or higher. If I wanted to take a listing for less than 6%, I had to get approval from my managing broker prior to signing the contract. This practice is perfectly legal. However, agents are not allowed to discuss commission structure with agents from other realty companies. Likewise, realty companies are not permitted to advertise their commission rates.

I have also been asked how real estate commissions are shared between the listing agent and the selling or buyer's agent. The total commission negotiated when the listing contract is signed is the maximum commission to be paid by the seller to complete the transaction. The amount of commission to be paid to the buyer's agent is negotiated when a sales contract for the purchase of the seller's property is written. Generally speaking, the total commission, which reflects a percentage of the total sales price, is split evenly between the listing agent and the selling agent. However, due to fierce competition and, in some cases, rancor between agencies, the reciprocal commission arrangement has shifted to one of stealth and greed. What I mean is that some listing agencies will intentionally hold back or "skim" a portion of the total commission and indicate in the Multiple Listing Service that the commission is less than what was agreed upon in the listing contract. Thus, the listing agency keeps more of the total commission. The selling agent may or may not know he has been slighted on the commission. You can only imagine the domino effect such a practice has on the relatively small community of realty companies in a given area.

The important thing for you, the consumer, to remember is that real estate commissions are ALWAYS negotiable. So, if you are considering listing your home for sale, use this knowledge to your benefit and negotiate a fair and reasonable commission rate. Real estate agents are hungry for commissions and will nearly always acquiesce to get your listing.

Kim Balsman is a former licensed Century 21 real estate agent and Realtor. She now devotes all of her time to her photography business and writing.