Does Shadow Inventory Hurt The Short Sale Investing Market And Short Sale Agents

By David Corbaley

Those doing short sale investing or who are real estate agents dealing with short sales must understand "Shadow Inventory" and what it's going to mean for your future in real estate.

Professionals are at odds in their agreement on shadow Inventory. It seems that they can't decide whether it's good, bad, or if it even exists at all. Will it destroy the real estate market?

This article will uncover secrets about the shadow inventory that many people don't want you to know about. After researching this topic in depth, I believe you should understand the concerns.

1. There are millions of homeowners who are currently holding off on selling their property because they want to wait for the market prices to go up. These homeowners would otherwise sell, but because of the suppressed market are waiting. When they do sell, it will all be at once, because market indicators and the news will tell them that everything is great, and the time is "right" to sell. This will crush the housing market with inventory and take prices lower, which is just the opposite of what we want.

2. Let's talk about the six hundred thousand homes that lenders are holding in their REO inventory. Most people don't know that when a lender forecloses on a home, they don't have to sell it right away. They can hold it until they decide to sell. What are they doing? Well, they too are "waiting" for the market to go up so they can add their huge inventory to the market.

3. Here's the icing on the cake. There are 7 million homes now in default. these homes will go to foreclosure, and be added to the lenders' huge numbers, or they owners will try to sell them before the foreclosure, adding to the total number.

If you're a real estate agent working short sales, or if you're doing short sale investing, you are part of the solution. Without these solutions, the market will most likely get worse. Worse then we've ever seen it. Now is the time to learn about short sales, if you're involved at all, you can help. It can also be very lucrative. - 31862

About the Author:

Learn more about foreclosure training systems. Stop by our site where you can find out a free ebook on strategies for buying foreclosed homes and learn the top methods.

Real Estate Investing Tips to Success

By Jamel Gibbs

Real Estate Investing is hands down the best way to build cash. Around 90% of the world's wealthiest people made their money through investing in real estate. But how can an ordinary person invest in properties and make a substantial amount of money in the current real estate market? What are the main things you need to understand before going to flip a house? And why is it important to educate yourself before flipping a house? In this article I will go over several ways that will assist you in your real estate investing venture.

Step 1: Find Your Buyer

In order to make money in real estate investing, it makes sense to first find your buyers. You can do this by calling we buy houses signs, building a buyer's list, attending auctions, working with real estate agents and using the MLS as well as other simple strategies and tactics. The best strategy to use if you ask me would be to target buyers that have a history of purchasing properties for cash.

Action Step 3: Gather the Information

After you find the buyers the next thing you need to do is find out what your buyers want. You can do this by asking them what areas of town they are investing in. How much they are looking to spend on their ideal property? What type of property they are currently buying? And how fast they can settle? Getting these questions answered will give you an idea of what to approach your buyers with.

Action Step 3: Dealing with Motivated Sellers

In order to make money in flipping houses you have to understand how to work with motivated sellers. A motivated seller can be anyone who is in distress financially, or physically. An example of a motivated seller is someone who is getting a divorce, going into foreclosure, paying 2 mortgages, need to rehab their property but don't have the cash, going bankrupt, and so on. Therefore, in order to get a great deal when real estate investing you have to find someone that falls within this category. You can find these sellers using various forms of marketing.

Step 4: Screening the Seller

When your advertising is working and the motivated sellers are calling, in order to really get a good house flip you want to get as much information from the seller as possible. You can do this by asking the seller for information on their house. You want to find out what type of condition the house is in as well as the asking price of the property, but the most important question you need to know is why the seller is determined to get rid of their property.

Action Step 5: Run Comps

Once you receive the information from the seller, the next thing you need to do is run comps to see if the deal will be a good investment property. You can do this by going to sites like Realquest.com, Zillow.com, Bank of America has a home value estimator and you can find it by going to Google.com and punching in Bank of America Home Value Estimator. You can also use sites like Eppraisal.com, or consult with a Realtor. There are many ways to run comps when you're looking to find out what a house is truly worth.

Tip number 6: Working the Numbers

After you get the comps for the house the next thing you need to do in order to invest in real estate is work the numbers. You can do this buy understanding the MAO formula. The MAO formula is as follows: You take the ARV (After repair value) and you multiply it by 65% and that leaves you with the amount that you're willing to pay for the house. Then you subtract the rehab cost, closing cost and overhead and that leaves you with the MAO or (Maximum Allowable Offer) that you can make on the house.

Step 7: Making the Offer

Once you have the MAO, the next thing you do is get your offer in. Your should always offer less than what your maximum allowable offer is. The best thing to do in this case is to subtract and additional 10% off of the MAO and start you're bidding with the motivated seller from there. Negotiations can make or break your deal when it comes to flipping houses so make sure that you're sincere and very clear with the seller from the beginning.

Action Step 8: Making Cashola!

Once you get all of this done, you need to approach your investors list that fit the criteria of the particular property. Doing this will allow you to sell the property rapidly, being that you have pre-screen the buyers and you know that they can close fast! Once you have solid buyer then all you need to do is send the contracts over to the title company and wait for your check to come in the mail. The best strategy to use in real estate investing would be to sell the property for less than the market value without rehabbing it. This is called wholesaling the property.

Copyright 2010 Jamel Gibbs

All Rights Reserved - 31862

About the Author:

Want to find out more about Real Estate Investing, then you can get more real estate investing education here.

Why You Too Want To Earn Money By Using Foreclosures

By Marcel Bongers

There are many different things that you can put your money into when you want to make more money. Investing is very common, and can be a great way to save for retirement or to pay for a college tuition. Whatever it is that you want to do, you can have your money making more money for you. This is always something that is a little risky, but there is plenty of money out there to be made. Some like to put their money into real estate investing, and if they know what they are doing, they can make a lot of money doing so.

There are moments when you can make a quick buck with real estate. But with the current economic crisis that is unlikely to happen. The majority of the people invest for the long run. And a few like to make a combination. You can buy distressed properties and then completely fix them, if you are knowledgeable in the areas of electricity, plumbing, carpentry, painting, etc. Otherwise you have to hire subcontractors. Who can eat up a lot of your potential profit. When you do everything by yourself it is possible to sell a fixed property for two to three times the price you paid for. And then the next step would be to reinvest that money in newly bought distressed houses and double your money.

If you want to get into real estate investing for the long haul, you can buy up properties to rent out to others. You run a bit more risk this way, as you have to worry about having tenants in your properties on a fairly regular basis, and you do have property depreciation to think about. You also have regular maintenance costs. However, if you have the right amount of properties, this type of real estate investing can really pay off in the long run. Some find that if they have enough properties, they can often retire early with a good amount from rentals on top of other types of investments.

Whatever way you decide to go with real estate investing, you do have to have some money to get started. You can try to buy properties with loans, but that does get complicated. However, it is doable. Either way, you are risking your own money. While buying and selling homes quickly might not work during some periods of time, renting for income is something that is always a good idea. No matter what the housing market is doing, there are always people who need a place to live.

That brings us to the option of buying a foreclosure. In many cases this can be a very lucrative business. When being at the right place at the right moment, you can buy at half price. The number of foreclosures is still on the rise in the US, mainly because the worse economic condition that we are facing at the moment. Last year more then one million families faced a foreclosure.

The foreclosure process is divided into three steps, upon which you can act:

1. Pre-foreclosure
2. Auction
3. REO

The bank will start to take steps when the borrower has missed his payments for a period between 3 tot 6 months. She will enlist a notice of default at the records of the county office. This is the official announcement that house owner is late with his payments and the bank wants to take legal steps. Also this is the start of the reinstatement period which usually ends one week before the auction takes place. Does the borrower not pay within the stipulated timeframe, then a foreclosure date will be determined. This is the official notice of sale that has to be entered in the records of the county office and also published in the local press.

The county courthouse is the designated place for the auction of a foreclosure. The bidding starts at an amount that is equal to the accrued interest, the loan balance and any additional fees. When there are no buyers at that price, then the attorney of the bank who conducts the sale, will buy the house.

Should this happen, that the property is now labelled as a REO or Real Estate Owned. This can happen when the perceived value of the property is lower then the total amount owned to the bank. But please note that I wrote perceived value. Because, what is of low value for many people, still can be of high value for the right buyer.

All liens except property taxes are removed by the foreclosure. The order of the liens is determined by the date of recording. So this saves you the work of researching if there are any others who have filed a lien on the property. By buying at the foreclosure you get a house with a clean title. - 31862

About the Author:

Learn more about Real Estate Investing and locating sellers. Stop by Marcel Bongers's site where you can find out all about buying a foreclosure and what it can do for you.

Foreclosure Auctions: How to Look for Them and What to Expect

By Jonathon Elliott

Are you trying to buy a new home? If you're, you will be turned off by the $164000 estate prices you see on the market. Tthis doesn't mean that now isn't the time to shop for a home, however it will mean that you will be searching in the wrong place. Instead of visiting the websites of realtors or flipping through their brochures, place your focus on foreclosure properties. Foreclosure properties are often a great deal, as they're simple to search for and affordable.

One of the most standard ways that that foreclosures are bought and sold is at an auction. This auction sometimes takes place at a county, town, or village government workplace, such as the clerk's department. As for the way you'll be able to find these foreclosure auctions, they are usually advertised in native newspapers. You'll be able to additionally search native records, as foreclosures are public notice.

One among the few downsides to purchasing a home at a foreclosure auction is the inspection, as you aren't usually granted one. Most bidders are bidding on the home as-is. As-is isn't therefore bad, however it might be if you haven't seen the property. With that said, since foreclosures are public notice, you must be able to get the address of the property in question. You will wish to drive by. Although you must not decide a book by its cowl, a drive by will provide you an idea of what to expect. When you have got doubts, it might be best to move on and target alternative auctions.

If you decide to attend a foreclosure auction, the last issue you wish to try to to is simply show up. That is unless you're scouting to determine how an auction works. When you are serious regarding purchasing a foreclosed property at an auction, you wish to be prepared. This preparation involves having financing lined up. Several can need that you either have the cash on hand or show proof that you do have the financial resources needed to follow through with the sale. Contingency loans are usually prohibited. Check deposits are sometimes required before you can even place a bid.

As for the auction itself, it depends. It is not uncommon for bids to be sealed. Once everybody has placed a bid, the highest bidder will be announced. For bids that are not sealed, the auctioneer can start with a figure, usually around $1,000 or less and the bidding will continue on. If you are the winner bidder, it's important to grasp that you may not be ready to maneuver into your new home right away. Of course, it's likely that you will be unable to try and do so. Several states give current occupants a redemption amount or a grace period. This is often where they can still fight to stay their home. Once this point has passed, you'll be able to begin the eviction method if this occupants do not leave voluntarily.

As it absolutely was previously stated, you'll want to attend a foreclosure auction and simply sit on the sidelines. You must be allowed to try to to so. If you are unfamiliar with the buying and selling of property, foreclosures, or auctions, you can learn a lot. This information is very important, as many fellow bidders can be investors looking to turn a profit, not buy their 1st home. - 31862

About the Author:

Looking to find the best deal on home foreclosure, then visit www.foreclosureslisting.org to find the best advice on foreclosure listings for you.

Opting For Home Refinancing Can Save Your From Foreclosure

By Jason Myers

Foreclosure is a bad dream for every home owners and because dealing with it is difficult, the next great thing to do is to make sure it doesn't occur.

Needless to say, effectively planning for a new house, financially speaking, inspite of mortgage financing, is of the essence. You should save up a couple of thousands in a bank account, to ensure that all those unforeseen expenses are catered for. However for many people and all the monetary needs that are available, that is almost not a choice. Therefore they are left unprepared when a foreclosure warning is eminent.

Perhaps the great news is that there is always one possible and inexpensive choice that you may pursue to make sure that you don't turn out to be a victim of foreclosure. And that is home refinancing. By description, house refinancing is modifying the mortgage repayment program so you may have them lowered, and that means your interest rates too. It's truly the best thing to do when the risk of foreclosure turns out to be very big.

Mortgage refinancing will enable you to suit the mortgage payments better into your funds since they are decreased by a significant percentage.

For a person that required this kind of closure, it's the most ideal thing to do. But for someone who is in financial chaos and their source of livelihood is turning out to be minimal owing to augmented expenditure, this is a very temporary solution that may not produce the desired outcome.

The disadvantage of mortgage refinancing is that it undermines your credit score and decreases your standing, something that may come back to bite in the event you look for another loan after you have cleared your mortgage. However that should not be something to restrain you, since looking at the bigger picture, and coming to a decision whether to refinance may rescue you from the risk of foreclosure so you need to understand your main concerns cleverly. - 31862

About the Author:

As the housing crisis bottoms we'll have plenty of one in a lifetime real estate investing opportunities. You may also want to read our articles about home refinancing so you'll have funds to invest!

Investing In Real Estate Is Not Meant To Only Put A Roof Over Your Head

By Jason Myers

Buying a home is one of those wishes that most of us have and hope to achieve somewhere along the way. For many individuals, acquiring a house is compulsory so that they can have a place to call home. For others that look beyond the scope of a roof over their head and a good investment instead.

A house is a source of equity and one that can assist you attain many things, such as get home equity loans if you have poor credibility.

Investing in Real Estate can be equally a stressful and a satisfying experience depending on how you choose to view the whole approach. Normally if you have a real estate agent, your duty is really reduced since the real estate agent take over the work of a broker and sets out to find the specific thing that you want as far as homes go. They go through with all the formalities and the formalities and ensure that you do the least amount of work, but take the most in the end.

Sometimes, it aids when one simply buys a piece of real estate property and retains it until it increases the value. For one, this is the type of investments that requires much persistence since the piece of real estate takes time before it escalates. But as a general rule, it's always greater to make the purchase at some point in the slow months of the year and then reselling it during the more rewarding months.

It might sound simple but other times the earnings can surmount to thousands of dollars and that simply put is what is termed as good business. So the next time as you consider acquiring a home, don't consider it only as a family asset, think too of it as a good investment because that is the reality. - 31862

About the Author:

As the housing crisis bottoms we'll have plenty of one in a lifetime real estate investing opportunities. You may also want to read our articles about home refinancing so you'll have funds to invest!

Finding the Best Foreclosure Listing Is Involving But Deeply Rewarding

By Jason Myers

If you are a house searcher and want to look for some of the greates and hottest deals in the marketplace, then there is just one word that should remind you, and that is foreclosure.

Foreclosed houses are normally listed for prices that are way under their market worth. And that makes them the best deals. The only duty that stays at hand is that of looking for the best foreclosure ad that can get you even closure to landing a foreclosed house. But before you begin, you must be aware beforehand that the whole procedure is taxing and exhausting, and it will consume a good amount of your time. But all that is perfectly expected as in the end, it all pays off and in a huge way.

Foreclosure listings are usually indicated in most magazines and newsletters. However with the infiltration of the world wide web into our everyday lives, you can check out the listings placed on websites.

Normally, you have the choice to find any foreclosed home in the country, though the homes narrowing on a particular state, or county, might be of more importance as the notion made is that you know the place that you wish to reside in even before searching for the foreclosed ones.

One characteristic that is mostly demanding is that of patience as it is what you will need as you run through the foreclosure listings. There can be homes that are sweetly priced, but if you waited, you could go for an even sweeter one. Therefore it's greatly suggested that you do not settle for the first listing you see. Rummage through some pages and you will be assured of getting a deal too good to be true.

But don't take too long as a good house may just pass you by. Make sure that you have the foreclosures you have confined on inspected for professional approval before buying. - 31862

About the Author:

As the housing crisis bottoms we'll have plenty of one in a lifetime real estate investing opportunities. You may also want to read our articles about home refinancing so you'll have funds to invest!

Major Considerations For First Time House Buyers

By Jason Myers

Buying a house particularly a spacious one, is a big deal since there are so many factors to take into account. It takes a long list for all to be taken up here, but there are the main ones that need to be considered every time you are buying a house.

The assumption is that not everyone can afford to invest on a property, and for the selected few who can, they must take note of the following factors.

Foremost is the location. There are so many neighborhoods that can fall into the criteria that you are looking for, and you need to screen out those you like best. Your work place matters and you should consider that when choosing the location so that the morning journey to your place of work cannot be too long for convenience.

You must realize that good prospective neighborhoods come with a high price so you do need to budget a little extra if you are sure that the neighborhood or suburbia you are moving in to is is a good cluster. If it is in the growing period and has the probability of becoming a popular place in the near future, you are in for a bargain, but that all relies on the expertise of your real estate agent and how good his negotiation skills are.

Good decision making is of the essence when buying a home. That is because if you fail to respond right away, you run the risk of losing your prospective house to other buyers. This is where instinct is allowed to play its full course. That is if you have a really good feeling about a house, it could be a good idea to just get it right away so that if you don't like it, you can always resell, normally at a better deal. - 31862

About the Author:

As the housing crisis bottoms we'll have plenty of one in a lifetime real estate investing opportunities. You may also want to read our articles about home refinancing so you'll have funds to invest!