What is Real Estate

Writen by Peter Stilgoe

Situated in the south of the Adriatic Sea, with a population of over 10 million Montenegro is roughly the size of Northern Ireland and has a similar turbulent history. Neighboured by three of its former Yugoslavian counterparts Croatia, Serbia and Albania, Montenegro is an unforgettable land blessed with a host of worldly wonders including Europe's largest bird preserve, its deepest canyon, its southernmost fiord, it's last virgin forest (or so is claimed) and the largest lake in the Balkans.

However the self acclaimed "jewel of the Adriatic" and once hotspot for the rich and famous, still today bears the scars of almost a decade of international sanctions having unwillingly been drawn into a vicious implosion of the former Yugoslavia, although never directly involved in the conflict.

Plight for independence

The Socialist Republic of Yugoslavia, made up of Montenegro, Serbia, Croatia, Slovenia, Croatia, Bosnia-Hercegovina and Macedonia, was declared in 1945. Ethnic tensions were masked under the reign of authoritarian communist leader Josip Broz Tito. Still 10 years after his death in 1980 the federation lived on, but under Serbian nationalist leader Slobodan Milosevic it fell apart as blood was shed throughout the 1990s. Devastating wars raged in Croatia and Bosnia, and fierce violence flared up in Kosovo, a small province of Serbia. International pressure on President Milosevic grew amid the escalating violence and in 1999 Nato carried out air strikes on Serbia and Kosovo. The UN took over the administration of the Kosovo region making it an international protectorate although legally still part of Serbia.

Serbia and Montenegro had together formed the Federal Republic of Yugoslavia between 1992 and 2003, however Montenegro's leaders had detached themselves from Milosevic's handling of Kosovo, and following his fall from leadership in October 2000 were evermore keen for state independence. Plans for independence were not forgotten, but it would seem postponed, with the formation of the union of Serbia and Montenegro in 2003. Remnants of the ex-communist state were abolished and a new, looser union between the two republics was created.

This union, brokered by the EU was intended to steady the region by straightening out Montenegro's demands for independence and averting further changes to the Balkan borders. Under the constitutional charter of this union, there is a federal presidency and defence as well as foreign ministries, however the two republics of Montenegro and Serbia are semi-independent states, which are in charge of their own economies and have their own legislation. The union was set to last a minimum of three years, after which both states could hold a referendum to decide on the future of the union. In May 2006 Montenegrins will hold a referendum to decide if they want to separate completely from Serbia. A voting majority of 55% will be able to approve a 'yes' for independence.

Tourism on the mend

However there have been signs that Montenegro is recovering from its somewhat gloomy recent past and rebuilding the tourism industry. World Travel and Tourism Council recently identified Montenegro as "the fastest growing travel and tourism economy in the world". Lord Byron once wrote '"At the moment of birth of our planet, the most beautiful meeting of land and sea was on the Montenegrin coast". Once the exclusive playground for celebrities, royalty and others could afford the price tag put on its beauty, Montenegro is today attracting an abundance of visitors from corners afar, keen to discover this unique blend of gigantic mountains, clear blue seas, deepest canyons, enchanting lakes and brimming wildlife sanctuary. However, it's clear to see from the frenzy of construction along Montenegro's 300km extraordinarily picturesque coastline how the country is intending to rebuild their elevated status.

Potential Property Hotspot

The country's signature 'hotel village', Sveti Stefan – an island resort attached to the coastline by a thin causeway, is receiving particular investment to once again attract the wealthy. The EU is granting financial aid and investment is being ploughed in from around the world as this country strives to return to its former glory. Apparently this resort was the original destination for Prince Charles and Princess Diana's honeymoon before it was leaked to the press and the destination had to be changed. Even though today's celebrity equivalents of Richard Burton and Elizabeth Taylor have not yet returned to frequent Montenegro's exclusive waterholes, the country still retains its lavish splendour that once drew them there and it's this opulence that is attracting the ever-more adventurous overseas home-seekers, along with their keen eye for a bargain, to this Adriatic gem. Properties in Montenegro, mainly charming stone houses, are placed along the stunning coastline in amongst rolling green hills and unspoiled freshwater lakes. They are being snapped up by canny Russians, east Europeans and Germans with an eye for a bargain with investment potential, and with there being little doubt that Montenegro is capable of returning itself to its former glory, this Adriatic gem could indeed prove its worth.

Although bargain-hunters themselves, Brits have somehow overlooked Montenegro's potential in their stampede into other more obvious central and eastern European property hotspots such as Croatia, Bulgaria and Turkey. So if the country boasts unparalleled beauty, a coastline stretching almost 300km, sunshine lasting from May to September, all-year-round activities including skiing, fishing and hunting and a history including the likes of Richard Burton and Elizabeth Taylor – what could the problem be?

It's possible that Montenegro's connections with Serbia and their shady past are clouding people's judgement when considering where to invest their money. However with Montenegro's push for independence and current bid for inclusion into the EU, as long as Serbia doesn't hold up proceedings, the real turning point for this small country could be just around the corner. The Montenegrin government is already laying the foundations for this opportunistic future and as well as being open to offers of foreign investment, has endeavoured to remove all red-tape surrounding residency, visa and tax, any possible obstacles for potential homebuyers, encouraging more people to buy into their dream.

How & Where To Buy

Properties can be bought through any one of the many English-speaking agents, and the ideal combination of charming and cheap can be found with some ease. The simple rule is, head inland. The Montenegrin locals like to live on the coast and have done so for many years, happily relaxing on their verandas dangling their feet in the ocean. Head slightly inland, just behind the frontline, and picturesque properties overlooking the peninsular can be found for a fraction of the price of their seafront neighbours.

According to Montenegro Living – the first Montenegrin agency to set up an office in the UK – property in this charming country is on average a third cheaper than can be found in Croatia. The northern coast is known to be more popular and expensive and so the southern coastline with it's wild and unspoiled beauty holds the key to bagging that bargain. As well as good, cheap coastal properties in the south, the rural and mountainous areas inland should not be overlooked, with an abundance of nature and outdoor activities on the doorstep, these are definitely areas worth investigating. Houses in Montenegro can be bought from as low as £24,000 up to £677,000 (35,000 to 1 million euros). Properties suitable for small business opportunities such as apartment buildings, hotels and bars are now coming onto the market thanks to the lack of purchasing restrictions and are also worth a look.

Visiting Montenegro

Flights to Montenegro's main airport in Tivat are increasing, and Dubrovnik airport in neighbouring Croatia also lends it hand to re-building tourism. Companies such as Balkan Holidays specialise in holidays to Eastern Europe, but more and more carriers are adding Montenegro to their flight itinerary. Budva is the principal and the largest tourist area along the coastline, with it's fortified ancient town, labyrinth of cobbled streets and quaint squares bustling with markets and open-air concerts and an array of locals shops, restaurants and taverns serving local specialities, and bars and clubs that come alive at night with visiting from all corners. 2km down the road from Budva, is Becici, where one of the most spectacular beaches in the Mediterranean can be found. The Becici resort is ideal for those seeking an active water-sport holiday. Reached by a delightful sea promenade, the local fishing village in this region is dotted with friendly restaurants, bars and taverns that spice up the nightlife. Other important tourism centres are the hotel resort at Kotor, and if course the magnificent Sveti Stefan.

Fast Facts:

· Currency - Yugoslav Dinar
· Country dialling code – 381
· Country Timezone - GMT/UTC +1
· Electricity - 220V 50HzHz

Peter Stilgoe runs a property investment website called Market-Trend.co.uk. and a property investing directory. He is a keen investor himself in Eastern European property & will be happy to advise anyone wishing to build up such a portfolio.

Writen by Sue And Chuck DeFiore

Well, as we have discussed in previous newsletters first you have to set up goals for yourself, both long term and short term. Don't forget these goals define how your business is run. They will determine what you do on a daily, weekly and monthly basis. The best way to do this is to picture yourself a year down the road. Close your eyes and get a mental picture of where you want to be, what you want to have, how you want to look, then open your eyes and write all that down on paper or speak into a voice recorder.

First determine how much time you will have to work on your business. If you are starting part time or spare time and think you might have 5-7 hours per week, in reality you probably will have 2.5 to 3.5 hours per week. Whenever we ask a partnering student how much time they have I always cut the time they give me in half. Why? Well because things come up, such as children, obligations, illnesses, their other job, etc. So rather than kid yourself and set yourself up for failure before you even start, be realistic with the amount of time you will have.

Once you have determined how much time you have, make up a 12 month plan. For example if you only have 3 hours per week to work, that means in a 4 week month you have 12 hours. So realistically, the first month is going to be getting yourself set up. Getting your identity package done, your template letters done, your database set, your telephone script done, your research (networking, FSBO sites). You want to start collecting newspapers (remember 5 weeks and older). Your second month would be going through the newspapers, and going on line to those FSBO sites and collecting numbers. During the end of the second month (6 weeks after you have started) you should be able to start calling on property. Depending on the hours you are doing your calls will determine how many people you get to speak with as opposed to leaving a message for them. Months three and four you will continue your calls, set up a networking schedule and do deals with one particular strategy. After you feel comfortable with that strategy you can move on to the next one during months five and six. Months seven and eight should have you starting the next strategy, and the same goes for the remaining months (nine, ten, eleven and twelve). During months eleven and twelve you should do some evaluating of your goals for the year, and start thinking of where you want to go in year two. Be sure to write articles up for each deal and make note of things you did wrong (yes, you will make mistakes) and how you fixed them for subsequent deals.

Once you have your monthly plan set up, break that down in weekly goals, and then set up your daily goals to meet your weekly goals. If you don't meet some goals, don't beat yourself up. Look at the reasons why you didn't meet your goals for that particular day, week or month. Did other things get in the way (family, work, health issues) or did you just slack off. Sometimes you need to take a breather and come back with some fresh energy. So if you need a break once in a while take one.

However, you need to realize if you want to succeed you need to make a commitment to implementing the plan you set up. If this means missing some television shows, shopping spree, visiting with friends or some sleep; then that is what you have to do.

So start implementing the plan today!

Copyright DeFiore Enterprises 2003

 

Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com

Writen by Trey Patrick

So you have bad credit? Or no credit but you want to get into your own home? Rent To Own or Lease Purchase Homes can be the ticket to getting that second chance to live the American Dream. But don't get so wrapped up in the dream you don't see the reality.

I had bought ten houses in less than six months and knew I was on to something. I lease purchased the homes to the tenants and found a win-win for all three parties.

Then I began to hear of the scams which were going on through the investor world. Unknown tenants were renting homes from investors but they were making some big mistakes. Let's look at the top 4 that are made every day and how you can avoid doing the same.

Mistake #1

**Rent Amount**

One of the top mistakes made is when the tenant gets into a home because they can afford the payment or rent every month. And they never take the time to figure out- can I afford the payment when I get ready to buy the house.

Don't get so locked on the easy payment and forget your goal. You want to own this home one day. Go to one of the free calculators online. A great one is at Bankrate.com. Figure out the payment by calculating the price and the interest rate. Now ask yourself, can I afford to buy this house one day or am I just kidding myself and just renting.

Mistake #2

**Price**

Are you overpaying just because you want your own home? Don't be fooled and blind to the thought that you may be overpaying for a home just because you want your own home? Take the time to research the neighborhood. Pull flyers for houses that are for sale. Does it come close to your price? Call a real estate agent up. Ask what the houses in this neighborhood selling for. Don't pay too much in a year for the luxury of living in your own home today. You'll regret it.

Mistake #3

**Maintenance**

So now you are an owner-in-training? You are taking care of the maintenance. But when is it too much? What does your contract read? How much maintenance are you liable for? If the roof goes out, do you have to come up with the $5000?

That being said, it is true that many investors rent to own or lease purchase because they don't want to be landlords. Midnight calls to unclog toilets. No thank you. Bottom line- Make sure your contract has a limit to the maintenance that you are liable for.

Mistake #4

Let's call it ** term **.

Let's define it:

The length of time that you can buy the house that you are renting or leasing.

What is the mistake and why does it matter?

There are investors/landlords who will place you in a home and know that in a year's time there is no way for you to be able to get the loan.

You see, many times one year is not going to be enough time to *cure** or **repair** your credit.

It's just not enough time.

Don't get into a position that you won't be able to buy the house. You will lose your option money.

You have a contract that ends in one year. You can now do nothing but move.

The landlord can ask you to leave and you have to leave. The house is then rented again for a higher rent and higher purchase price and you're looking for the next home.

How to avoid this:

Before getting into a contract on the home, get with a mortgage broker in your town. You can find one in the paper who will be advertising to help people with bad credit.

Let him/her run your credit and make sure you tell them that you want their honest opinion. Can you get a loan in a year's time and what do you need to do for that to happen. What will be the rate that you are looking at?

Don't let them just tell you what they think you want to hear. "Give it to me straight, Doc."

Let them help you with a game plan on how to improve your credit for the future.

Let's sum up the mistakes:

Avoid the mistakes dealing with price, rent amount, maintenance, and the term of the contract. I hope you've learned something. I know now that you'll go into your next house with more info.

Trey Patrick is an investor and landlord in Athens, GA. He is also the author of an ebook showing the general public how to buy their own rent to own home with very little money and no credit check. http://www.buyhomewithnocreditcheck.com

Writen by Sue And Chuck DeFiore

Sue and Chuck DeFiore have the perfect solution for you – Lease Purchasing your home!

What is Lease Purchasing?

A Lease Purchase is a process that combines a basic rental lease with an agreement to purchase, or with an option to purchase the property. The Buyer (or Lease-Purchaser) pays to the seller a monthly payment that usually approximates a rental amount or a typical mortgage payment on the home. A percentage of that payment is typically applied towards the purchase price. At the end of the term, the buyer has the right to purchase the property for the price and terms to which both parties have previously agreed.

Put another way, a lease purchase is essentially a rental agreement combined with a purchase contract with pre-negotiated terms. The buyer leases the property for a specific period of time and then purchases the property before the end of the lease agreement. Sales price, length of rental, rent credits, escrow instructions, etc., are all contained in the agreement.

A lease purchase is a wonderful way to control property without the headaches of banks, mortgages, taxes or immediate loan qualifying. Lease Purchasing gives you the right to buy the property, but not the obligation to buy.

Following are just some of the benefits of Lease Purchasing for sellers.

1. Usually top sales price for the property.

2. Better quality tenants.

3. Higher rent than usual for the market area.

4. Non-refundable option consideration.

5. All minor maintenance is delegated to the tenant/buyer.

6. Seller remains on the deed.

7. Seller retains the tax shelter.

8. No fees to pay.

So, you ask, how do I lease purchase my home? Drop by our website and check out "How To Sell Your Home In 30 Days Or Less! Without A Realtor Or Realtor Commissions!", Just click on the link below: http://www.homebusinesssolutions.com/products/lpsellermanual.htm

We will give you the ability to move your home in 30 days or less! This will allow you to move forward with your plans, whatever they are! Why not get started making those plans today!

Copyright DeFiore Enterprises 2005

Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 20 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach. Visit http://www.hbsdigest.com to start today.

Writen by Brooke Sikula

It has been hard to miss the explosion of interest in real estate that the last few years have brought. More and more people are moving from being mere renters to being homeowners, and still more people have moved up to their dream house. Finding the right home to purchase is not always as easy as it seems, however, and it is important to know what to look for before you shop.

Perhaps the most important consideration when finding the right home to purchase is how much you can afford to spend. It is no secret that home prices have been steadily on the rise, and in some markets the average home now costs as much as half a million dollars. With prices like this it is important to be sure you can afford the required monthly payments before you start shopping.

Fortunately there are a number of mortgage payment calculators available on the internet to make this process a lot easier. Simply by entering the purchase price of the home, the amount of your down payment, and the interest rate for which you expect to qualify, you can get a rough estimate of your monthly payment. Take a good look at the number and decide whether or not you can afford the payments. If you are unsure, you may want to look for a home in a lower price range.

The next step is to consult a local real estate agent and start looking for the perfect home. You probably already have an idea of the location where your home should be, and we all know how important location is when it comes to real estate. For maximum value, it is often best to buy a home in an economically depressed area that is expected to recover in coming years. By making this gamble, it may be possible to get a real bargain.

It may be necessary to expand your search beyond your target area in order to find the home of your dreams, so it is important to prepare for this possibility. The real estate agent should have access to the Multiple Listing Service (MLS), which lists all the houses for sale by a number of different real estate agencies. Be sure to look through this book and ask to see the homes you are interested in.

Once you have found a home you like, it is essential to have a thorough inspection done on that home. A home inspection costs very little, and it can provide real peace of mind. After all, you will likely be spending hundreds of thousands of dollars for your home. It makes sense to spend a couple of hundred dollars to protect that valuable purchase and discover any hidden damage.

Brooke Sikula is a freelance writer based in Ventura, CA and writes on a wide range of topics from home improvement to credit repair and everything in between. She is a regular contributor to http://www.get-home-improvement.com and http://www.loan-mortgage-auto.com. For more information on real estate and mortgage finance, check out http://www.loan-mortgage-auto.com.