What is Real Estate

Writen by Jeanette Joy Fisher

The secret to success in real estate investment is finding bargain properties that you can "flip" quickly for a profit. Here are a few ideas for becoming a successful investor:

1) Obtain sound advice from investors who are already successful. Friends and realtors can refer you to folks who have proven investment track records.

2) Define your investment goals. Do you want to buy a home to live in, to fix and sell, or to hold for your future?

3) Read real estate investing books and articles, attend workshops and seminars, while AVOIDING out-of-date infomercials.

4) Choose a lender with great service, a good closing record, and fair costs, and get preapproved for financing.

5) Define your target locations, and become an expert. Study real estate newspaper sections, pick up sale flyers, and note sales prices in your target area.

6) Interview real estate agents and learn from them, but don't sign any agreements that will limit your search for bargain properties. You're looking for agents who know your target market thoroughly and will work hard to find properties for you.

7) Find a good escrow officer and use them for every transaction. They'll know your needs and will quickly learn how to expedite your transactions.

8) Study home remodeling techniques by reading design magazines and books. Learn the cost of materials, supplies, and building trades by visiting home improvement warehouses and talking with remodeling professionals.

9) Make many offers on properties, including bidding on HUD repos, asking for great terms and concessions from sellers. The more offers you make, the greater your chance of success.

10) Always have your transformation in mind. Have a plan for what will turn a doghouse into a dollhouse. It will speed turnaround time and save you money on mortgage payments.

Copyright. 2004. Jeanette 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 John-Robin Middlebrook

California Land Financing Budget (Example):

Land Purchase Price $300,000 Land Purchase Price
Soft Cost of Construction $ 40,000 Plans and Permits
Hard Cost of Construction $350,000 Construction Costs
Closing Costs $ 22,000 Fees, Title, and Escrow.
5% Misc. Reserve $ 17,500 5% of Construction Costs
Loan Interest Reserve $ 35,000 Interest On Amount Drawn
Total Building Cost $764,500
Appraised Value $800,000 Estimated Value of Land with Building Completed
Down Payment $191,125 25% of $764,500

Benefits of California Land Lenders

Loan officers dealing with California land should be able to assist you with the following information:

Assessment of the estimated yearly taxes, insurances, and HOA fees.
Approximate interest rate for the loan.

Down payment required.

Interpretation of your personal financial statements, credit scores, and income-to-debt ratios to conclude your eligibility.

Utilities Lead to the Path of Finance

One important thing to consider as you look to buy California land is utilities. When construction developers go into the construction stage to build new homes in Southern California then roads and utilities are built for a large number of homes. When the lender knows that a lot has public road access and utilities nearby they are often more willing to supply financing for the land because there is a foreseeable capacity to build on it which increase the California real estate worth and lowers the risk to the lender. The cost of installing utilities on a lot is not considered part of the hard construction costs for building.

Land Loans from a California Lender's POV

California land loans are more risky to lenders than residential loans. The reason for this is that normally most people do not live on the land they buy since it's vacant. As a result it is industry practice to not consider land a primary residence until something is built, and so it follows that vacant land is called investment property even if a person intends to build on it in the near future. Also, vacant land is called commercial property in California, that is property used for an investment purpose, even if the land is zoned residential and there are plans in place to build a primary residence. The importance of this categorization for lenders is that their risk increases on lending for land because a person can walk away from a land loan easier than a loan on a primary residence since the borrower has another place to live hypothetically.

Lenders for land will expect more from a borrow than on a residential home loan. There is a larger down payment expected typically than a California residential house or condo. There is more preparatory work expected also. Lenders may expect the borrower or buyer to bring a variety of items to the lender's table for a construction loan. Here is a partial list of potential requirements some lender's stipulate in order to obtain a land loan:

Complete and permissible architectural drawings for what will be built on the land.

Detailed time tables for all aspects of construction.

Finalized realistic budget for the building.

Supervisory chart, including a list of builder contact information for contractors and the architect assigned.

Proof of bonded and insured builders and contractors.

Here is a list of the paperwork required from a borrower to get started on a land loan in California:

Last 2 years of your federal income tax statements.

Last 2 months of pay stubs for both you and your spouse with contact information.

Your property information if you currently own including tax statements, HOA statements, any current mortgage statements, and any other debt statements you currently have.

Any additional proof of income streams, including child support, trust fund, investment income, dividends, interest, rental income, social security or government monies.

A complete list of your bank accounts and documentation, including all your checking, savings, money markets, and banking information.

Some Negatives and Positives

One draw back is that the courts of law in California have less regulations to protect the interests of land buyers than they provide to California residential home buyers since a land purchase is considered an investment. On the positive side, land is like having a clean slate of property. California land buyers have a much easier time when it comes to planning what they want to build, as long as the building plans live up to the regulations and zoning requirements of the city for the land's location. As a land buyer CA you also have much more flexibility on getting what you want than doing a residential home remodel for example.

The best part of all about obtaining a loan to buy land in California is that it forces you to think through the land buying process ahead of time, talk to the right people which you will need to help you build a new home in Southern California and make a financial budget with sensible deadlines so that ultimately you can become a true player in the future development of a community for all to see. Plus you will have a really cool story about your personal experience in the timeless process of building on California land.

California Real Estate information from Christian Keller Williams Realtor CA - John-Robin Middlebrook, California land, homes, commercial property, mobile homes, Los Angeles, Orange County, San Bernardino, San Diego, Kern, Ventura, Riverside.

Writen by Julie Jalone

When you are buying a home it seems like there are so many reports and inspections needed. You are advised to get the home appraised, inspected, checked for termites, surveyed and so on. Why are there so many different reports?

Each report will tell you something different although some clearly have overlaps. But they all offer something that other report won't cover.

Lenders make loans on the sales price or the appraised value -- whichever is less. The appraisal is an estimate of value by an independent third party. This reduces the lender's risk by assuring that the property is worth what you are paying for it. As a general rule you do not often see a "sale" appraisal with a value higher than the agreed upon sales price but it is not uncommon to see appraised value less than the sales price. This is your warning signal that you are overpaying. There is also significant information in appraisals that confirm you are buying what has been advertised by the seller.

The home inspection is very important. It is not an appraisal. The appraisal helps confirm the home's value, the inspection looks at the home's condition. The professional inspector checks all systems of the house, from the foundation to the roof and most everything between. Do the appliances work? Does the plumbing leak? How old is the roof and when will it need to be replaced? Is the electrical wiring up to code? The home inspection report will tell you what needs to be repaired and what amount the repairs could cost.

The termite or pest inspection is also important as your home is probably built of wood. Most lenders require a pest inspection but not all will require a home inspection. You should insist on both inspections to protect your best interests. You don't want to buy a home just to find out in a month that termites have destroyed the structural safety and it will cost you $25,000 to repair the home. The pest and the home inspections will help protect you.

The survey shows the boundaries of the property, where the improvements are located, the size of the property and other factors such as easements and encroachments. This information is important. For example, if the current owners have built an addition that encroaches on the lot line, a neighbor could demand its removal. It is also a way to confirm the property size is what has been advertised or the side fence belongs completely to the neighbors. The survey also shows any easements, or right of ways for others to use your property. For example, there is often a Public Utility Easement on property. This gives that utility the right to enter your property and install, maintain or repair their system.

In most cases, here in California, the only report you are likely to have much choice in obtaining is the Home Inspection. All four reports are valuable, give you different information and help avoid surprises which generally are not a good thing in buying real estate.

Julie Jalone, professional Realtor, serving the needs of buyers and sellers of residential property in Sacramento, Placer, El Dorado, Yolo and Yuba counties in California

Writen by Rhiannon Williamson

The stunning island of Cyprus lies in the beautiful warm, calm and clear waters of the Mediterranean Sea and enjoys up to 320 days of unadulterated sunshine every year.

This makes Cyprus inimitably popular with holiday makers and second home hunters which in turn makes it the perfect real estate investment location for international property investors.

In fact, for anyone contemplating diversifying their investment portfolio and branching out into real estate in the near future, Cyprus has to be one of the hottest destinations in terms of the potential for profit it offers the investor.

With strong annual incomes achievable from letting property to the holiday market year round and capital gains consistently reaching double digits in Cyprus in the property market where else should an investor be looking right now?!

Add to all these positive points the fact that anyone who purchases a home in Cyprus for investment purposes could also personally holiday in the home and soak up some European sophistication, some Mediterranean cuisine and some Cyprus sunshine and you have the perfect package of reasons to invest in Cyprus immediately!

Since the Republic of Cyprus joined the European Union back in 2004 the rules relating to the foreign freehold ownership of real estate on the island have come under scrutiny. Currently it is only permissible for foreign buyers to own one property but as soon as this law changes it is predicted that there will be a buying frenzy on the island and that this increase in demand will inflate property prices sharply. Those who get in first and stake their claim now will be able to benefit from these predicted property price increases in the future.

Law in Cyprus is based on English common law, and as a result not only is the entire property buying process simple and straightforward but all owners of real estate in Cyprus regardless of their country of citizenship have the same property ownership rights as local Cypriots. This means that owning property in Cyprus is safe and the entire property title deed registration process is secure.

Building standards in Cyprus meet European standards and the abundance of available resale and off-plan property in Cyprus is good which means an investor not only has choice but he has choice of quality properties for sale.

Investors interested in real estate in Cyprus should note that the most popular properties that holiday makers are seeking to rent out are apartments near to golf courses and villas with private pools; and second home hunters are generally in search of either apartments or houses close to the seaside and the main tourist towns of Cyprus such as Paphos and Larnaca.

Rhiannon Williamson writes about real estate investment in emerging markets worldwide. To read more of her guides about property investment in Cyprus click here.

Writen by Jeanette Joy Fisher

I've taught the concepts of Design Psychology for many years, and I know how much it can empower a person, and allow them to create a fabulous home that sustains their emotions. Since it's based on science, I know that Design Psychology is effective at turning plain spaces into happy places.

I discovered Design Psychology in 1985, when my husband and I purchased an 1878 Queen Anne Victorian and began a major renovation. After tearing everything out of the kitchen, we rebuilt the entire space, using concepts I'd learned while studying interior design. But when the project was complete, the feeling of the space was all wrong, so I began a fifteen-year search to learn about how design details influence our emotions.

Although I know a number of interior designers, Design Psychology differs from "traditional" interior design in that it acknowledges how our senses can profoundly react to many other factors besides those of basic interior design. The concepts of Design Psychology address elements of the human psyche that interior design doesn't take into consideration.

Design Psychology also differs from the ancient practice of Feng Shui, although the two concepts are totally compatible. There's no reason at all that homeowners can't use both the techniques of Feng Shui and Design Psychology to enhance their homes. But after years of study, I have come to believe that Design Psychology is superior to Feng Shui, in large part because Feng Shui is based on superstition, while Design Psychology draws its concepts from science.

Through the use of Design Psychology, my husband and I have bought and sold 27 houses, to date. We begin by creating an overall design plan, based on our target market and selling season. Then, by using particular colors, patterns, props, and staging methods, we're able to sell our homes quickly, and for thousands of dollars more than our competition.

Our senses react to the design choices we make, so choosing the wrong colors or patterns in wallpaper, fabric, or paint can negatively impact our senses. Design Psychology works, and if you'll just take a little extra time to avoid making design mistakes, you'll save MONEY and sell your home more quickly, both of which will have a significant effect on your bottom line when your sign the closing papers!

(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 Mark Nash

Curious what those initials stand for on some real estate agents business cards? Consumers should know the difference between professional designations and real estate license levels. The top three professional designations according to industry sources are the Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), and the Graduate REALTOR® Institute (GRI). Real estate license levels vary by state law. Broker and salesperson are typically the two levels of real estate licensure. Most states have a renewal period where licensees meet mandatory continuing education requirements.

Fast fact. Do REALTORS® with a professional designation earn more income? Sales agents holding professional designations have incomes that are $27,000 higher, while brokers with designations earn $18,900 more per year. (Source: 2001 National Association of REALTORS® Member Profile.)

Fast term. Continuing Education: Required review and updates of state real estate license laws with a defined hour requirement. The National Association of REALTORS® also has mandatory ethics training every four years for all members of its association.

Fast tip. Homebuyers should look for the Accredited Buyers Representative designation. The Real Estate Agent Council trains experienced real estate agents in specifically representing the real estate consumer.

Real estate help desk. Dear Mark: We're first time buyers and don't know the difference between a Certified Residential Specialist and a Graduate REALTOR® Institute, can you help us out? Sean, Kenosha, Wisconsin

Dear Sean: Graduates of the REALTOR® Institute earn the GRI designation by completing a national program of advanced education consisting of residential marketing, cost basis, appreciation methods, investment and taxes in real estate, construction, exchanges, capital gains and mortgage programs. Agents who hold the CRS designation have additional education and sales experience with focus on the latest in real estate professionalism, sales and marketing techniques.

Mark Nash's fourth real estate book, "1001 Tips for Buying and Selling a Home" (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, Associated Press,CBS The Early Show, Bloomberg TV, Bottom Line Magazine.CNN-TV, Chicago Sun Times & Tribune, Fidelity Investor's Weekly, MarketWatch, HGTVpro.com, MSNBC.com, Smart Money Magazine,The New York Times, Realty Times, Universal Press Syndicate and USA Today.

Writen by Mark Nash

Nash's fourth real estate book working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, CBS The Early Show, Bloomberg TV, CNN-TV, Chicago Sun Times & Tribune, Fidelity Investor's Weekly, Dow Jones Market Watch, HGTV.com, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.

Savvy tips from someone that knows first-hand the questions home buyers and sellers want answered in a just-the-facts-please format for time-starved consumers. No millionaire in this books title which features all the nuts and bolts of residential real estate from surfing Internet home sites to closing or escrow. A handy desk reference for buyers and sellers who need a go-to resource.

The author is a contributing columnist to www.realtytimes.com, www.realtor.org, www.brokeragent.news , and www.principalbroker.com . His to-the-point tips stretch from "What's In, what's out with homebuyers in 2006" to "Foreclosures are not the next generation for property flippers". Not shy to address the changing brokerage world or advise home sellers to have a new attitude concerning pricing their home in 2006, Nash is known as "Hints by Heloise of Real Estate."

A sample of Nash's just-the-facts for home buyers and sellers in 2006.

-Low-ball offers. Offer over 87% of list if you serious, otherwise you will alienate the seller early on in negotiations.

-Homebuyers looking to purchase in over-heated markets should consider how much current prices have risen over the last year, two-years and five years. Contrast those rates with the potential pool of buyers to pay future prices along the same rates in the same markets. Will the local economy and personal income increases support spiraling home prices? Here's the bottom-line, are you willing to pay your projected appreciated sale price when you go to sell?

-Foreclosed homes are not always bargains. According to industry sources foreclosed properties don't sell for significantly less than other homes in most U.S. markets. If your in a high demand market don't expect steep discounts. Don't forget to factor in major repairs and minor improvements that foreclosed homes need. If owners couldn't pay the mortgage, they couldn't afford the maintenance, and often trash the homes in retaliation.

-Rooms need design basics for functional elegance. Group accessories together. Don't spread like-kind decorative objects around a room. Place collections together to give them more visual power. If you have a chair it needs a table next to it and a lamp, so it is a cozy reading station. Artwork should be streamlined and focused for impact. Hang artwork close together instead of scattering around a room. Keep the range of colors in a room tight. Too many colors is distracting and not inviting, you want buyers to linger.

-Place a classified ad on your local Craig's List. Many first-time buyers search this popular directory of rental and purchase homes. You'll be amazed at how many inquiries you receive from devotees to this list. -Sellers set home prices. Wrong, not in 2006. Sellers and their real estate agents can set value parameters, but sold comparable's are based on what the buyer perceived as a fair market price.

-Off-beat locations such as busy streets, corner lots, noisy trains and jets will be more difficult to sell to choosy buyers. Buyers want quiet, middle of the block locations away from busy intersections and train tracks, both commuter and freight lines. You might get a discount when you buy for a second rate location, but it's one thing you'll never be able to improve.

-The certificate of occupancy. All new construction and any renovation that requires a building permit must have a certificate of occupancy issued before it is habitable. Your mortgage lender will require one from the developer if you are purchasing new construction prior to closing on your loan.

-Cracked heat exchangers on furnaces indicate that it's a health issue and time for a new furnace. Home builders, owners and developers can put in lower-quality and under-sized furnaces that can have prematurely cracked or damaged heat exchangers. If your home inspector finds one, you better plan on replacing the furnace. From a safety standpoint cracked heat exchangers emit dangerous gases into a home.

-Acquire a blank copy of the local real estate contract and review before you sign one. Most local real estate boards have a form contract that has blanks for contract price, terms and conditions. You will feel more confident if you review a real estate contract long before you are asked to sign one. Ask your real estate agent for a blank contract after your first meeting. If you have questions about the contract ask your attorney to review it with you.

-Before your open house ask your agent or visit some other open houses in your community to see how many people attend. It's hard to predict how many will show and what they'll eat or drink. The weather and time of day will surly impact how little or much you need to prepare.

-Don't gossip about the previous homeowners, you might not know if the new owners still talk with them. Or gossip about others in the neighborhood. Let new owners make their own decisions.

-Feel free to open cabinets and closets. Homeowners and realty agents expect open house guests to investigate built-in cabinets and closets, built-in being the key word. If your in doubt remember built-in yes, otherwise no. In doubt ask the host or hostess.

-Existing home cost versus new construction. Research by residential real estate industry sources concur that a newly constructed home can cost up to 20% more than a comparable existing home. The added cost reflects current land, building materials and labor costs versus the cost basis for a home even one year old. Study appreciation and market conditions to determine if you sell your home within two years or less if these factors will cover your sales costs. Buyers looking at your home might consider it over-priced relative to a home built as recently as 3-5 years ago based on square footage comparisons and original cost basis.

-Forget high-heels. Spiked heels on shoes can easily dent bamboo and other softer wood floors. Plus if you got into the yard to take a look at the roof you might end up aerating the lawn.

*Best L..A. Real Estate Blog, Podcast, "Easy Way to Review"-New York Times, Featured on HGTV.com

Mark Nash's fourth real estate book, "1001 Tips for Buying and Selling a Home" (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, CBS The Early Show, Bloomberg TV, CNN-TV, Chicago Sun Times & Tribune, Fidelity Investor's Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.