What is Real Estate

Writen by Nathan Brown

Olomouc is an excellent choice for real estate investors and following is a profile of the city. Those of you who have read my newsletter before know my dispassionate style of presenting things so here are the facts on Olomouc as they may affect investors…

Area: 103.36 km2
Population (latest data December 31, 2003): 101,268

Distance from important European and Czech cities:

City / kms
Brno /  76
Ostrava /  100
Prague /  277
Vienna /  198
Bratislava /  197
Warsaw /  474
Budapest /   389
Berlin /  500
Paris /  1 302

Average monthly salary for Olomouc region (2003): 15 491 CZK
Average monthly salary for Czech Republic (2003): 17 445 CZK
Average monthly salary for Czech Republic (2005 2nd Q): 18 763 CZK

Education: 16% of residents in Olomouc have University level education

Average temperature in January: - 2°C to -4°C
Average temperature in July: 15°C to 19°C


Foreign Investors in Olomouc
(by no means comprehensive, only a sampling)

Investor (Country) / Business Activity / Year /Employees (2004)
Nestle Cesko, s.r.o. (Switzerland) /  Production of chocolate and chocolate candies /  1992 /  800
Foundeik, s.r.o. (Spain) /  Foundry /  2000 /  215
M.L.S. Holice, spol. s.r.o. Group Leroy (France) /  Production of alternators; sale, maintenance and repairs of rotating electric motors /  1922 /  770
Mora Aerospace, a.s. (USA) /  Development, designing, production, testing, maintenance, repairs, modifications and construction changes of the aviation technique /  1999 / 640
Mora Moravia a.s. (Slovakia, Hungary) /   Manufacture and sale of cooking technology appliances / 1996 /  640
Senior Automotive Czech, s.r.o. (UK) /  Production of shaped aluminum and steel pipes for the automotive industry / 2001 /   260
SIWE, a.s. (Austria) /  Production of forming, cutting and bending tools /  1992 /  143
TIMKEN Ceska Republika, s.r.o. (USA) /  Production of needle and roller bearings for automotive and engineering industry /  2001 /  523
Skanska DS, a.s. (Sweden) /  Construction of motorways, city roads, parking areas; construction and reconstruction of bridges, sewage systems /  1954 /  185
Exerion Precision Technology Olomouc, s.r.o. (Netherlands) /  Metalworking and assembly of metal-frame structures and functional modules /  1998 /  110

Other Investment News

Schneider Logistics, a leading global logistics company, opened new shared services centre in Olomouc. Thanks to this million euro investment more than 300 new highly qualified jobs will be created here.

"We chose Olomouc mainly for its sufficient supply of qualified people. The new centre will serve customers of Schneider Logistics from all over Europe, which is why our demands, for example on employees' language skills, are high," commented Willem Jan van Vorstenbos, Managing Director of Schneider Logistics in Europe, and added: "Of course we intend to offer employees the most varied training relating to languages, accounting and working with our special software applications developed for processing invoices."

Kappa Packaging opened a new plant for the production of packaging from backed corrugated board in the industrial zone Olomouc – Holice today. The new plant into which Kappa invested over 11 million euro will create more than 50 new jobs.

"The main factors behind the decision-making on the establishment of the new plant were the following: location in the heart of central Europe, know-how and skills of the original employees of the local plant Kappa Empack and – last but not lest – support of governmental organizations and representatives of local government," says Zden?k Suchitra, director of the Kappa Packaging plant in Olomouc.

The multinational company Head has decided to start the manufacture of skiing shoes in Litovel, Olomouc region. Head has acquired a factory in Litovel by reason of quick production start. Head plans to invest 2 million euros and create 120 jobs in the first phase.

Gerald Skrobanek, CEO Head Sport s.r.o. explained the reasons for this decision: "The advantage of the Czech Republic is mainly better logistics, but also higher labor productivity. Litovel offers an advantageous location and mainly experienced workers for our production technology. Mainly thanks to the very successful operations in the Czech Republic, the top management at Head decided not to move to the cheaper labor markets further to the East of Europe, but utilize the better infrastructure and eruditeness in the Czech Republic."

Olomouc Property Figures

Apartment Rentals in CZK per month (2004 3rd Q):
(average range - exceptions can be found either way)

Size /  CZK/month
1 + 1 (studio or bachelor) /  4 000 - 5 500
2 + 1 (1 bedroom) /  5 000 - 7 000
3 + 1 (2 bedroom) /  6 000 - 9 000
4 + 1 (3 bedroom) /   6 000 - 10 000

House Sales in thousands of CZK per flat (2004 3rd Q):
(average range - exceptions can be found either way)

Size /  New Build /  Heritage Building
1 + 1 (studio or bachelor) / 650 - 950 / 500 - 700
2 + 1 (1 bedroom) / 800 - 1 200 /  700 - 900
3 + 1 (2 bedroom) / 1 300 - 2 500 / 900 - 1 700
4 + 1 (3 bedroom) / 1 800 - 3 000 / 1 200 - 2 100

Property Examples
(common closing prices are commonly 5 - 10% less than the asking price)

1 ½ bedroom (2.5 + 1) flat right in the middle of the old town section. Beautiful heritage building with view to the square. New kitchen and kitchen cupboards. Hardwood flooring and tall ceilings. Asking price: 2 050 000 CZK

1 bedroom (2 + 1) completely reconstructed close to the center section of town. Completely reconstructed. 52 m2. Balcony. Asking price: 1 350 000 CZK

2 bedroom (3 + 1) newly built flat on the top floor of a heritage building in the historic center of Olomouc. 88 m2. Balcony. Asking price: 2 266 000 CZK

As we've emphasized before, at Czech Point 101 we are not going to over-inflate figures or try to sell you on hyped up facts. Our goal is to inform you to make the best investment decisions possible.


Recommended Reference Websites


Olomouc tourism website
Olomouc city website

The sources for this newsletter include the Olomouc city and CzechInvest.

Nathan Brown is the owner of Czech Point 101, a business which helps buyers find their perfect home in the Czech Republic and complete the purchase. Current projects in which Mr. Brown is directly involved include commercial and residential property investments and a portfolio of individual and corporate business interests in Czech Republic and North America.

Phone: +420 774 440 999
Email: nathan@czechpoint101.com
URL: http://www.czechpoint101.com

Writen by Steven Battle

Today's residential real estate market for investors has become very competitive in most major markets. The vast majority of real estate investing seminars and clubs are encouraging you to search out desperate home owners or distressed properties to be rehabbed.

Not to mention the fact that today's disillusioned stock investors have now realized that residential real estate investing offers better returns, with less capital risks. As you seek to identify your lucrative real estate opportunities, have you noticed that the good deals are getting harder to find?

I am not here to discourage you from investing in real estate, but would like to share real estate investment opportunities and information with you…..opportunities that only a few people are aware of and regularly participate in. That's right; I am referring to a niche investment market that has VERY LITTLE competition. This unique information is currently setting new trends within the commercial real estate investment community!

I know you are ready for me to tell you about this quiet niche investment market, so I will...... it is….……. ………..Commercial Real Estate. There are HUNDREDS, maybe THOUSANDS of niche market investment opportunities within Commercial Real Estate. And by the way........ the main reason why so few investors go after commercial real estate, and that might include yourself, is that you're not convinced that you would qualify for commercial financing ! ! Most investors are lead to believe that a 20% down payment is required to start the process for purchasing commercial properties. WELL, THIS IS NOT TRUE!

Let's do the math now…… financing a property that cost $5 Million dollars with 20% down would require you to put down $1,000,000 and you would still have to add in legal fees and closing costs. Yes, I know that only a few investors or even investment groups are able to meet these down payment requirements. Your first mistake as an investor would be to go to your local bank to seek financing, or worse, go to private or hard money lenders. First, remember the banks are regulated by the federal government and they are required to underwrite conforming loans and second, bank loans tend to be very structured and are generally inflexible to your project needs. In most cases, THESE LOANS will require a 20% DOWN PAYMENT OR MORE! The only benefit of using private or hard money lenders is when" NO OTHER FINANCING OPTIONS EXIST FOR YOU!"

FINANCING is the key ingredient to identifying lucrative real estate investment opportunities, yet, so few people truly understand the power of knowing WHERE to find the right financing and HOW to get it! WHAT IF you had several lenders, today, that would only require you have 2 to 3% down payments (on certain qualified projects)… WOULD THIS BE OF INTEREST TO YOU? A $5,000,000 loan with 2- 3% down payment equates to putting down $100,000 to $150,000. As an individual investor, this down payment would still be pretty steep for you however, today, many residential investors are already joining and forming Investment clubs to increase and enhance their purchasing power. TO ALL residential real estate investors....... the REAL MESSAGE here is that you are closer to buying commercial real estate than you think! This example should make it clear to you that finding the right financing is the FIRST step and the key ingredient to your real estate investing…….. however, there is a PROBLEM.

The problem is that as an investor, you have been trained to shop for properties FIRST, and almost never for financing. Finding the right financing FIRST will save you and make you more money over time, than you purchasing the undervalued properties and selling them later at or above market prices. I will repeat this….. MOST REAL ESTATE INVESTORS DO NOT UNDERSTAND THE IMPORTANCE OF FINANCING within the investment equation. The ability to save on the amount of the interest rate you are being charged…. month after month….. year after year… 2 or 3 % or more is huge. You may also find out what I already know….. . by securing the financing first…..THIS OPENS UP NEW INVESTMENT OPPORTUNITIES!

Let's review some of the BENEFITS that come with purchasing Commercial Real Estate:

1) Unlike residential real estate, commercial real estate's only purpose is to make money for its investors. If there was a 7% cap rate on the $5,000,000 sample property, it would cash flow $350,000 annually.

2) Do you think you would enjoy having professional tenants with long term leases?

3) Would it excite you if your investment projects qualify for Non recourse financing?

4) You can totally eliminate the process of rehabbing properties.

5) How about this…… YOU no longer have to chase tenants down to collect rent.

6) You no longer have to pay penalties to lenders for not being in owner occupied properties.

7) Expand your investment search throughout all 50 states.

8) Last and probably the MOST BENEFICIAL of all of the perks….You can qualify to purchase these properties using your commercial tenant's credit rating, business cash flow and their long-term rental leases!

We are searching for like -minded real estate investors and investment clubs that would like to join a Commercial Real Estate Investor Forum. We welcome that you come and ask your commercial financing questions and share your investment experiences with the group. Go to www.amoneybroker.com/ and click on "Join Our Investor Forum."

In an era where information rules, the small to medium sized real estate investor can NOW be a "Front Runner" AND a major player within the commercial real estate market!, says Steven Battle, Commercial Financial Consultant with Amoneybroker.com.

Writen by Raynor James

When house hunting, many buyers make the mistake of waiting to contact a lender until after they have located their dream home. As a buyer, you will be in a much stronger position with a seller if you are pre-approved.

Pre-Approval Letter

To effectively house hunt, you must know the amount you can borrow from a lender. There is nothing worse than find your dream home, but failing to qualify for the amount you need for a loan. Avoid this by asking your lender to pull your credit information and to let you know what needs to be done to get a pre-approval letter. If you are going to have problems with getting a loan, it is better to know about it as early as possible.

Sometimes buyers resist contacting lenders because it's not the enjoyable part of home buying and they're afraid an extra credit check will reduce their credit score. This resistance is penny wise and pound foolish. Buyers who get their loan arrangements lined up at the beginning of the house buying process are really doing themselves a favor.

Much of the country is experiencing a hot, sellers' market. It is not unusual for a seller to get more than one offer on the same day. If that happens to you, your pre-approved status can give you an edge over the competition. In fact, it can make a seller choose you over another bidder.

Presenting Your Letter to a Seller

When you tell the seller you want to buy their property, give them a copy of your pre-approval letter. They will probably recognize the value of the letter, but don't depend on this assumption. Make sure the seller realizes the loan is already approved.

As you give the seller the letter, explain to them that you are serious about making the transaction go smoothly and, for that reason, you have already been through most of the loan application process. Point out that the lender has pulled your credit info and you've provided copies of W-2s, pay stubs, and all the other things the lender needed to decide that you do qualify for a loan. Tell the seller that the only remaining thing to do is to give the lender a copy of the contract that you and the seller sign, and the property needs to appraise for an appropriate amount.

Taking this approach puts you in a very strong position. The seller knows you are not just wishing; you are capable of buying his property. One of a seller's worst nightmares is signing a contract with someone, taking his property off the market, wasting time and then finding out that the would-be buyer cannot get a loan. On the other hand, you and your pre-approval letter are dreams come true.

Put on your shining armor and get pre-approved by a lender. Once you have the letter in hand, get out there and find your dream home.

Raynor James is with http://www.fsboamerica.org - providing FSBO homes for sale by owner. Visit our "sell my home" page at http://www.fsboamerica.org/seller.cfm to list and sell your home for free for one month. Visit http://www.fsboamerica.org/buyer.cfm to see homes for sale by owner.

Writen by Brandon Cornett

This home buying tip will help you evaluate the seller's asking price before making an offer on the home.

Why Is It Called an Asking Price?
The phrase "asking price" is very telling. Sellers will ask for a certain amount. They may get that amount, they may get more, they may get less -- it all depends on the market. So the first thing to understand is that price and terms are always negotiable. If an asking price wasn't negotiable, it would be called a fixed price.

What Makes Up the Asking Price?
A seller (and a seller's agent) will look at market conditions, comparable sales in the area, home improvements and other factors. Based on that information, they'll ask for a certain amount.

With that being said, there are some people who take a less analytical approach when setting the price. These people want a profit, and they're willing to ignore reality in hopes of getting it. These types of sellers price their home well above market conditions and comparable sales, in the hope of earning a big payday.

The lesson here is that some sellers set realistic prices, while others don't. So don't every think: "Well, gosh, that's the price they've set ... so it must be realistic." Always do your homework. Remember, if the home is priced high by the seller and gets appraised low by the lender, you could have trouble getting approved for the loan.

How Do I Research Comparable Prices?

1. Use the Internet
Over the past couple of years, a number of home-valuation websites have sprung up. These sites will give you the *estimated* value of a particular home, based on local sales data and other factors. Keep in mind, however, that the "freshness" of their data varies greatly. Check a home's value on three different sites, and you'll probably get three different price ranges. The key is to shoot for the averages.

Some websites to get you started:

* www.domania.com/homepricecheck
* www.homepricecheck.com
* www.homegain.com
* www.housevalues.com
* www.zillow.com

2. Know Your Market
Are you in a buyer's market, a seller's market, or somewhere in between? You should be able to answer this question without hesitation. If you don't know what kind of market you're in, you won't know your true bargaining power. For example, in a seller's market, you'll probably be less successful trying to negotiate price. But in a buyer's market, you'll have more leverage. Keep up with real estate news and trends in your area. Know your market!

3. Follow Your Agent's Advice
Real estate agents are tapped into the local real estate scene. A good agent will help you identify and evaluate comparable sales in the area. This kind of analysis will help you set a realistic offer amount based on actual data.

Conclusion
Don't accept the asking price at face value. Verify and validate it. Do some homework to see if it's realistic or out of left field. Keep up with the real estate market in your area. Choose a knowledgeable agent who can help you make sense of all the data. This home buying tip will help you become a smart shopper and a well-informed negotiator.

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author's note, and also leave the hyperlinks active.

Learn more!
This home buying tip was brought to you by HomeBuyingInstitute.com, the Internet's largest library of home buying advice. Increase your home buying intelligence by visiting: http://www.homebuyinginstitute.com!

Writen by Jeanette Joy Fisher

Do you dream of making money in real estate? Do you realize how easy it is to make big bucks? Even a young inexperienced person can transform houses for great profit.

How to Fix, Flip, and Laugh All the Way to the Bank

At the age of twenty, our family friend Dawn made her first fortune flipping houses by herself. Dawn bought her first HUD repo (government-owned repossessed house), fixed it up and sold it herself. She made enough money to buy her second fixer house with all cash. Our young friend sold her second house for $44,000 profit and paid cash for her third fixer house. Within a few months, Dawn sold that house and had enough money to pay cash for another house and reward herself with her custom dream truck. Dawn did all this -- Three Doghouses -- In Nine Months!

How did Dawn do all this on her own? Dawn bought houses that needed only cosmetic work, not heavy construction. She painted the homes herself inside and out and put in updated lighting and plumbing fixtures. With new carpeting installed, the houses sold immediately to happy new owners.

Dawn says: "I loved buying properties and fixing them up; I also loved to work for myself. What freedom I had in my early years when all of my other friends had to work full time. Just like my Mom says 'carpet and paint makes you look like what you ain't', and 'there's bucks in yucks.' What someone would turn their nose up to, I bought and fixed up, and I said yuck all the way to the bank." (Don't you love how Dawn says her "early years?")

Now It's Your Turn

You too can start your own real estate investing business. You don't need savings -- it's possible to purchase houses with no money down and ask the seller to pay the closing costs. Don't listen to cynics who claim it can't be done today in this crazy market. We purchased our 27th house in 2004 for no money down, and expect to make a profit of no less than $100,000 (for one month of work)!

Our secret to success is making the house outshine the competition by using Design and Marketing Psychology to sell fast for higher profit. Buyers don't notice the psychology used, but they FEEL happy in the home and know they want it; even if it costs more than the house next door. Design Psychology will help you to choose the right colors, lighting, and materials to attract buyers in a specific price range.

You can also learn the secrets of Marketing Psychology to stage your transformed dollhouse in a way that entices buyers to pay more. Visit Joy to the Home.com website to see photographs of doghouses transformed into dollhouses.

What other business makes as much money as real estate investing? What other business gives great profit with so little start-up cost? More millionaires have made their fortune in real estate than in any other business.

Stop dreaming of making money in real estate. Now that you understand the possibilities, what are you waiting for? Invest in your future today.

(c) Copyright 2004, Jeanette J. Fisher. All rights reserved.

Professor Jeanette Fisher, author of Doghouse to Dollhouse for Dollars, Joy to the Home, and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, newsletters, and sales flyer template, see http://www.doghousetodollhousefordollars.com/pages/5/index.htm

Writen by Luigi Frascati

There is a brand new complete HUD homes Buyer's Guide out there entitled 'HUD HOMES FOR SALE', which I have been fortunate enough to be called upon to review. It is in the form of an e-book and authored by Frances Flynn Thorsen, a Real Estate Agent of 22 years and HUD specialist.

This is the best guide covering the topic of HUD I have ever read, by far. And it is also the only one I am aware of written with the best interest of consumers in mind. The e-book consists of 112 pages covering each and every aspect of HUD transactions, from qualifications standards to FHA financing and underwriting guidelines. It is jam-packed with helpful hints and tips on how to select an Agent that specializes in HUD homes, all the way to determining how low should one go with the offer, and still get it accepted.

But perhaps most impressive is the writing style that Frances Flynn Thorsen uses throughout the e-book: succinct and to the point, so that anyone can easily and quickly grasp the concepts at hand. This work is written specifically for those Buyers, whether owner-users or investors, who mean business. Her no-frills approach is refreshingly welcome and useful. Moreover, as the procedures for handling HUD homes constantly evolves, Frances goes the extra step to update changes on a website specifically devoted to this book. So, in essence, one buys not only the comprehensive Guide but also all the future updates as well, as and when they come.

HUD HOMES FOR SALE is a user-friendly Guide also for all those non-American investors who are not particularly fond, for good or bad, of the way the United States Department of Housing and Urban Development handles business. Additionally, as Author Thorsen points out very clearly, any qualified Buyer can purchase HUD homes. This is of great interest particularly for Canadian investors, considering the prolonged slide of the American Dollar vis-à-vis the Loonie, which has made the American real estate landscape look already especially attractive for Canadians.

But irrespective of their origins, with HUD HOMES FOR SALE Buyer's Guide in hand all investors can now get into the HUD homes buying process with no fear of lack of knowledge or competence. More particularly, all those overly-cautious purchasers who make it a point to gather every scrap of information about potential investments - and who miss some great opportunities while trying to decide which ones are the great opportunities along the way - need to worry no more. HUD HOMES FOR SALE is the roadmap to success in HUD investing, laid out right in front of their very own eyes.

And last, but not least, a consideration about the price: at USD $19.95 per e-copy, this is a super investment all and by itself. It will save Buyers several hundreds of dollars in lawyers' consultation fees, and the result is going to be definitely more thorough, focused and to the point.

HUD HOMES FOR SALE can be purchased online by visiting http://hudhomesforsale.realtownblogs.com or by e-mailing the Author, Frances Flynn Thorsen, at Fran@TheREALTYgram.com HUD HOMES FOR SALE is a Guide that I recommend openheartedly. It is an e-book that provides the knowledge and tools necessary to develop and implement an intelligent HUD investment programme. I already have my own copy and for anyone interested in successful HUD investments, HUD HOMES FOR SALE is a Guide that will withstand the test of time.

Feel free to tell Frances that I sent you.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.

Writen by Martin Lukac

You may not know exactly how much to tell the potential buyer of your home about the property. Disclosure to potential home buyers about problems and issues has been a much debated subject. Many areas actually have laws that require certain disclosures to be made at the time the real estate contract is entered into.

Personally, I tell all. Everything from the once or twice the wind blew down the chimney the wrong way one windy spring to the small little hole in the guest room window screen. Nothing is too small and nothing is to large.

Caveat Emptor -- "let the buyer beware" -- used to be the law when it came to real estate transactions. Unless the buyer specifically asked about the defect, the seller didn't need to disclose any problems.

But over the years, the Courts noticed that this was unfair. Car buyers get to test drive cars, so why should home buyers be so blind? If a seller knows about a problem in the home, the problem should be corrected or disclosed to a potential buyer.

Modern consumer protection acts have led to disclosure requirements for sellers.

Although the laws vary from place to place, the purpose of these diclosures remain the same. Sellers of residential real estate must disclose to their purchasers any known defects or information concerning the water and sewer systems, insulations, structural systems, plumbing, electrical, heating and air-conditioning systems, fixtures and much more.

These laws require the seller to complete a disclosure form at the time the real estate purchase contract is entered into and give it to the purchaser. If the purchaser has not recieved the form, he or she will have the right to terminate the contract and receive a full return of the earnest money.

What is considered a defect? Must it be something large? Do bones in the backyard really qualify as a defect?

Yes, they do. The courts have even ruled that land discovered to once be a graveyard or a scene of a heinous crime must come with a disclosure.

For example, in 1964, Mr. Louis Hickman created and recorded a piece of land that was once a graveyard. Mr. Hickman had removed the tombstones and all other surface evidence, leaving the graves underground.

In the 80's, a couple built a house on the lot. Fifteen years later, they discovered the graveyard.

The case (Carven vs. Hickman) used the Statute of Repose. This statute basically is designed to protect builders from perpetual liability for defective conditions due to the improvement of a property. The graveyard did not count as an improvement and did not protect Mr. Hickman from liability for the "defect".

This case isn't your technical lack of disclosure case, but it gives you an idea of what you should disclose -- everything. Otherwise, thirty-one years later, you or your estate could be sued for non-disclosure.

Caveat Emptor has no place in today's real estate market. Disclosure of all known problems isn't just being honest, it is beneficial for the home seller. You can protect yourself from litigation by simply stated everything. Yes, the price might drop a few hundred dollars, but it may save you tens of thousands in lawyer fees later.

Copyright 2006 #1 Loans USA

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today.