Feb 11

Is time running out?There are many strategies for buying real estate in a slow market.  The benefit for buyers is there are many homes to choose from and many deals that can be made.

Strategies For Buying Real Estate In A Slow Market

By: Real Estate Advisor

The real estate market tends to be cyclical with some periods favoring buyers and other periods favoring sellers. As with other free markets, the pricing and availability of real estate is directly related to the forces of supply and demand. While many real estate markets in the United States are experiencing a substantial slowdown, other markets remain robust, and some even continue to grow. What makes the situation even more complicated is that even within a particular city or county, there may be some areas that are hot and others that are cold.

In regions of the country in which the real estate market is slowing, there are some things homebuyers can do to increase their chance of getting the property that they want on terms that are favorable. Below are some strategies to consider:

1. Clarify What You Want. Be sure to understand what kind of property you want (e.g. bedrooms, bathrooms, size, yard, location, etc.). Identify items that you “must have” and items that you would be willing to forego if your other priorities were met.

2. Consult Experts. You’ve no doubt heard the saying that “all real estate is local,” so arm yourself with the best information available. Consult a local real estate expert who can guide you about what communities are hot and which ones are not. Obviously, you are more likely to find deals in communities that have excess supply and limited demand than vice versa.

3. Understand Market Data. Obtaining and evaluating data can be one of the most powerful tools in your arsenal. Identify communities that you find desirable and ask your real estate agent to provide you relevant sales statistics. For example, your agent can provide you:

a. A summary of how many properties are available in communities that you deem desirable.

b. How long properties are taking to sell this month, last month, last quarter, last year, etc.

c. How many properties have sold this month, last month, last quarter, last year, etc.

d. Changes in the median and average price of properties for a community this month, last month, last quarter, last year, etc.

e. Data on the sales price to list price ratio (SP: LP). This ratio provides information about how much, on average, sellers are reducing their price.

f. Detailed data on properties that are similar to the type of property you desire (often known as “comparables” or “comps”).

4. High Inventory Communities. Identify, or ask your agent to identify, communities that appear to be particularly slow, and that have an unusually large inventory of homes. You will have a broader variety of options in these communities, and you may increase the likelihood of finding a better deal.

5. Loan Pre-Approval. Be sure to consult with your bank or mortgage broker and obtain a loan pre-approval document. This not only let’s you know how much you can afford, but it also demonstrates to sellers that you are a serious buyer and that your offer is worthy of serious consideration.

6. Seller’s Motivation. While information about why a seller is selling is usually confidential, there are situations in which the seller will allow their agent to disclose important factors regarding their personal situation. Be sure to ask your agent to inquire about any information that the seller has disclosed to his/her agent that can be conveyed to your agent. This information may help you decide on making an offer on a property and the price you wish to offer.

7. Home Inspection. A home inspection conducted by a qualified inspector can provide you valuable information about the condition of a property. Moreover, if there are items that need repair or replacement, you can use this information to modify your offer price or terms.

8. Expand Search Scope. As mentioned above, even within a particular city or county, there may be some areas that are hot and others that are not. Be sure to provided detailed information about what you want to your agent, so that he/she can provide you a variety of community options.

9. Be Patient. Time is on your side when there is excess supply and insufficient demand. Try not to “fall in love” with a house so much that you cannot be objective. It may be that multiple offers and counter-offers occur before you either get the property you want or decide to walk way from a deal. You may also want to look at more properties than you normally would, so that you are exposed to a variety of options.

While the above is not an exhaustive list of strategies, it is a good starting point of issues to consider when buying real estate, particularly in a market that favors buyers. Obtain the services of a knowledgeable Real Estate agent who can provide you with additional strategies to help you reach your real estate objectives.

About the Author

San Diego Real Estate

Riverside Real Estate

Pacific Beach Real Estate

(ArticlesBase SC #50850)

Article Source: http://www.articlesbase.com/Strategies For Buying Real Estate In A Slow Market

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Feb 10
Big single-family home

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With the real estate market being a buyers market, you need to make your home more attractive. Using a lease option can help you sell your home to buyers that might not be able to qualify for a loan.

Lease and Option Strategy to Make Money With Single-Family Houses

By Franco Zinzi

Most Investors Don’t Have the Cash Reserves to Subsidize Sublease-Options:

The fact of the matter is that most real estate investors are woefully under-capitalized and do not have the deep pockets or cash reserves that are usually needed to subsidize sublease-option deals. Few serial sublease-option investors are around because most people go broke supporting their first sublease-option deal! This lack of operating capital creates a domino effect whenever there is any type of financial emergency. For example, when a tenant-buyer fails to pay the monthly sublease payment, the lessee usually has no money to make the lease payment to the property owner, which forces the owner to initiate eviction proceedings against the lessee for nonpayment of rent.

This in turn forces the lessee to start the eviction process against the tenant-buyer for failing to pay the rent. And if the lessee cannot come up with the money to pay the lease payment, the lessee will end up losing the real estate option, and the only thing he or she will have to show for their time, effort, and money will be an eviction on his or her record.

The Standard Lease-Option Agreement Violates the Due-on-Sale Clause in Loans:

Although I know of no case nationwide where a residential mortgage or deed of trust lender has declared a loan to be in default because the borrower signed a lease-option agreement on the property securing the mortgage or deed of trust and promissory note, you need to know that the lender ’s discovery of a leaseoption agreement can trigger the due-on-sale clause contained in residential mortgage and deed of trust loans.

Many Equity-Skimming Scams Involve the Use of Lease-Options:

You also need to know that many equity-skimming scams involve the use of leaseoptions. Equity skimming occurs when a property owner uses any part of the rent, assets, proceeds, income, or other funds derived from the property covered by a mortgage or deed of trust loan as personal funds. In a typical lease-option equity-skimming scam, a property owner collects an option fee and security deposit upfront and then collects lease payments for months on end without ever making a single loan payment to the lender. This goes on until the lender finally forecloses on the loan and evicts the unsuspecting lessee or tenant-buyer.

A Low-Cost, Low-Risk Lease and Option Strategy That Makes Financial Sense:

I hope that you heed my advice and avoid using the high-risk sublease-option strategy, which I have written about here. Instead, use a low-risk lease and option strategy, which involves buying a low-cost real estate option on an undervalued single-family house that you can lease at a below-market rental rate. This way, you not only save money on housing costs but also have the opportunity to profit from the property’s appreciation in value. The lease and option strategy provides a relatively low-cost, low-risk way to gain control of an undervalued single-family house, without having to incur the cost and financial liability that goes along with outright ownership.

And best of all, when you use the lease and option strategy that I am writing about here, you do not have to become a landlord and babysit tenant-buyers. All you have to do is move in and market the house to potential buyers. In the meantime, you get all of the benefits of homeownership- less the tax benefits-without ever having to:

1. Qualify for a loan.

2. Pay a down payment.

3. Pay closing costs.

4. Pay for repairs.

5. Buy any property.

Franco Zinzi has been involved with online marketing for nearly 3 years and likes to write on various subjects. Come visit his latest website which discusses of Stock Trading and leasing information for the owner of his own business.

Article Source: http://EzineArticles.com/?expert=Franco_Zinzi
http://EzineArticles.com/?Lease-and-Option-Strategy-to-Make-Money-With-Single-Family-Houses&id=3712850

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Feb 09

Brooklyn - Park Slope: Montgomery Place BrowstonesWhen you invest in real estate, it is important to keep your costs as low as possible in order to make the investment worthwhile. Taxes are one of the areas that can eat at your profits. Here are some tips to saving as much on taxes as you can.

8 Real Estate Tax Deductions to Improve Your ROI

Author: G. Brian Davis

Since the days of the Roman Empire, the phrase “the Tax Man cometh” has instilled fear and dread in the hearts of citizens worldwide. Fortunately for real estate investors, there are many tax deductions built into the real estate investing process, to help stem the rising tide of taxes in the last year. Coupled with a struggling and uncertain economy, every penny you save on taxes is a penny earned (a tax-free penny, at that).

Real Estate Tax Deduction 1: Settlement Charges

Many critics of real estate investment cite the high up-front investment in real estate, due to settlement charges such as origination points and other mortgage fees, title charges, appraisal costs, home owner insurance premiums, and myriad other costs that somehow find their way onto the HUD-1 forms. Mercifully, however, the majority of settlement charges can be deducted from your taxes, so don’t forget to bring the HUD-1 forms to your accountant’s office.

Real Estate Tax Deduction 2: Mortgage Interest

For the first three-quarters of your mortgage loan, the overwhelming majority of your mortgage payments is comprised of interest, not principal, but the good news is that the interest portion of your payment is tax-deductible. Don’t forget to deduct it, because it can often be a substantial sum.

Real Estate Tax Deduction 3: Private Mortgage Insurance & Real Estate Taxes

Don’t pay taxes twice! Your real estate taxes can be deducted from your income taxes, so be sure to save your tax statements for each rental property. Further, high LTV loans generally include private mortgage insurance (PMI), which is also tax deductible.

Real Estate Tax Deduction 4: Repairs and Maintenance

In most cases, landlords are obligated by their rental agreement to perform necessary maintenance and repairs on their rental investment property, which can often result in substantial costs to the landlord. However, the good news is that most repairs and maintenance on a rental investment property are tax-deductible, so be sure to check with your accountant about every penny invested in your properties.

Real Estate Tax Deduction 5: Landlord Forms & Legal Advice

Whenever you purchase landlord forms or supplies, or pay for legal advice or services that relate to your rental properties, these expenses should be deducted as a cost of doing business.

Real Estate Tax Deduction 6: Property Management Fees

Property management firms generally charge 5-10% of your monthly rent, not to mention they often pile on fees for finding new tenants to fill a vacant rental property. These fees add up very quickly, so be sure to write them off as deductible expenses.

Real Estate Tax Deduction 7: Depreciation

Depreciation is one of the greatest tax advantages of real estate investing, as you can deduct the theoretical “depreciation” of your rental property’s value. While the rules are somewhat complex (talk to an experienced real estate accountant), the general idea is that you can deduct your rental property’s depreciation as if it dropped to a value of zero over the course of 27.5 years.

Real Estate Tax Deduction 8: Accounting Costs

It’s almost a sick joke: not only does the government take a third of your paycheck, but you have to pay someone to figure out exactly how much you owe them! The good news, however, is that you can deduct last year’s accounting bill from this year’s taxes, and at least you won’t pay taxes on that money!

Real estate tax law can be very confusing and complex, so all landlords are advised to hire an excellent accountant familiar with real estate tax law to fill out all of your tax forms and review your return. Take advantage of the many tax advantages conferred upon real estate investors, and improve your return on investment!

Article Source: http://www.articlesbase.com/real-estate-articles/8-real-estate-tax-deductions-to-improve-your-roi-1645668.html

About the Author

Brian Davis is a landlord and real estate investor that consults and provides educational material for many landlord and real estate websites, including Real Estate Pro Articles and EZ Landlord Forms, featuring state-specific real estate forms for landlords.

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Feb 08
Panama Property = Money

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Real estate investment clubs are an excellent way to buy, sell, and learn when it comes to real estate.  A good real estate club will allow you to find other investors to do deals with and make the whole process faster.

Build a Great Real Estate Investment Club

By Steven Gillman

A good real estate investment club helps its members find investment opportunities. It also helps bring people together in profitable partnerships. It can be a place to find alternative sources of financing as well. Here are some tips for making your club work like it should.

Get The Right Members

There is no need to keep anyone from joining your organization, but you don’t want it to be nothing but beginning investors who haven’t yet bought a single thing. To be a valuable tool, an investment club need experienced investors too. To get them to join you may have to contact them directly. Talk to real estate agents to see who is actively investing in the area and sent them an invitation or call them on the phone.

First, let them know the club exists. Many investors understand the value of these organizations and will join as soon as they hear about them. Otherwise you might offer free membership for the first year, just to get them to join. Explain that even though you have many new investors, these “newbies” can find properties that they can’t afford or are afraid to invest in, and experienced investors can take advantage of these.

Have The Right Activities

If you don’t already have an “I have/I need” routine, start one. This is a time when every member announces what they have or what they need. For example, at a meeting of our real estate investment club in Tucson a few years ago, a member mentioned that he had good cupboards he had removed from a house he was upgrading. He made a little selling them to another member, and that investor saved perhaps a couple thousand dollars versus buying new cupboards for his fixer upper rental.

At another meeting a man mentioned that they had a great house to flip but didn’t have the money to do the deal. He wanted to sell the contract. I later overheard him negotiating the sale with another investor. He would make a few thousand for having found the deal, and the other investor hopefully made at least $20,000 fixing and flipping the property.

These “haves” and “needs” were written down on an overhead projector along with the person’s name and phone number. Members took notes religiously. On the “I need” side there were regularly investors who needed financial help with investments, providing great opportunities for those who had more money than time to invest.

Once per month seems to be a good schedule for meetings for a real estate investment club. Guest speakers and special presentations are a great way to make them more interesting, but always leave room for members to mingle with each other (this is one of the primary values), and for the “I have/I need” session. Membership dues should be reasonable, generally just enough to cover the rental of the space, minor advertising, perhaps coffee and cookies or some other snack.

Copyright Steve Gillman. To see a photo of the house we bought for $17,500, and to get a free Real Estate Investing Course, visit: http://www.HousesUnderFiftyThousand.com

Article Source: http://EzineArticles.com/?expert=Steven_Gillman
http://EzineArticles.com/?Build-a-Great-Real-Estate-Investment-Club&id=2817781

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Feb 03

Phil Sextion giving some FlexMLS TipsLong gone are the days of agents working together to sell each others listings. Now with the growing popularity of the Internet, home buyers turn to the Internet as the first source for finding a home.

How Real Estate Marketing Has Completely Changed in the Last Decade

By: Joe McFerrin

The success of Real Estate Marketing like all forms of marketing hinges on your ability to produce leads that may turn into actual customers later on. And you have to do this consistently on a daily basis – maybe even on Sundays. Real Estate Marketing is a demanding practice that has to turn into a habit with you. This means you have to be truly committed to Real Estate Marketing for it to work.

If your Real Estate Marketing effort has been fairly successful, you will be able to see leads turning into prospects like clockwork. If it doesn’t, the only sound you will hear in your office is the hum of your air-conditioner and your fingers tapping on your desk waiting, and waiting, and waiting. That is the last type of scenario you want to be in.

You may not know this but there are actually researchers who specialize in the field of Real Estate Marketing too. Of course, Real Estate Marketing has always been about being able to close a sale of a real estate property, but there actually some other trends that come into play in real estate sales, if you take the time to analyze Real Estate Marketing trends.

One aspect of Real Estate Marketing is that majority of people who have a home to sell opt to contact a real estate sales specialist to guide them. But there are some who opt to sell their homes through their own efforts without the assistance of a real estate sales specialist. People who fall into the latter category are usually those who have extensive experience already in selling their home.

A Real Estate Marketing professional is often selected based on his reputation among previous clients and his peers in the industry. Real Estate Marketing professionals may be offering full-service brokerage services (which means such their company or agency can provide a full range of real estate services to the home seller); or limited services (into which discount brokerage services fall); and lastly minimal services (which allow home sellers to participate more actively in the home selling process.)

Appropriate Real Estate Marketing includes having to conduct the selling process under a limited period of time; being able to look over sales contracts and corresponding purchase offers with a keen eye; handle documents and contracts; conduct negotiations with any buyers; and host scheduled showings. This is why your Real Estate Marketing specialist has to charge a commission on his services – real estate sales specialists have to earn a living too while earning a profit. And this is also why some people opt to handle the entire Real Estate Marketing process themselves – they do not want to pay a percentage-based commission to the Real Estate Marketing specialist if they can help it.

Another trend that is making Real Estate Marketing harder is that there are now more people in the industry than there ever were. This makes Real Estate Marketing a more competitive prospect these days for the average real estate sales specialist.

About the Author

To learn more about Real Estate Marketing Visit http://www.interiorwebdesign.com

(ArticlesBase SC #317897)

Article Source: http://www.articlesbase.com/How Real Estate Marketing Has Completely Changed in the Last Decade

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Feb 02

the house is getting thereThe government is spending money like a kid in a candy store and because of this there are opportunities to take advantage of the many grants that are available for real estate investing.

Real Estate Investing Grants

By: Charles Petty

It was just recently when the concept of investing in real estate has flourished to so many people. But then again, this business has already been popular some time ago and has become an enormous economic activity of the community’s livelihood. However, there was no given title to this sort of industry and the practice was no less than scientific and systematic. Even so, since people see how buying and selling of properties have made them some money, the continuation and outsourcing of real estate became a market bearing profit endeavor.

The trade goes on and people agreed to its existence. Due to its democracy, extreme competition and several activities were engaged. The introduction of grants in real estate was due to the thought of making people enter into the hype and provide the necessary support to those who aspire financially and hope that money is easier in this sense.

Real estate grants are pretty much as important as setting a deal with someone. For the real estate world, this is the source of finance. The industry can attain tremendous growth only if it is watered with sufficient funds. Grants have a competitive nature wherein only a few qualified people succeed in achieving it.

The people behind these grants or those who fund it would be the state or otherwise a private company, some welfare institutions are involved too. Majority of the grants are not accountable from tax exemption as stated by the laws of the United States. As a rule of thumb, some of these grants require the person to trade with the organization giving the grant. If given by the government, the person being offered by the grant will be required to comply with numerous formalities.

A lot of real estate grants are used to encourage an investment. However, you have to be reminded that the amount you will receive from these grants are not enough to fulfill a completed investment. Even if a person receives a big amount, it is still advised to increase the capital by collecting the funds through other viable sources. Since the real estate world poses such a challenging situation, grants are made for the sole purpose of increasing the investment.

Real estate is such a fruitful business however, there are numerous risks surrounding it. For beginners, grants are very much important in order to help them get a running start. Grants greatly influence a person’s interest in real estate. Still for the novice, grants are also available in different forms like lower interest loans. The objectives in giving these grants are advantageous. If the person given the grant suffers from a certain loss due to different aspects, his or her risks can be shared.

If the person wasn’t able to invest due to freezing of funds or if the person was not able to invest to the desired amount, grants will be very beneficial to reach his or her goals. If profits are received, grants will aid in appreciation of capital and further encourage him or her to invest more in the future.

For real estate investors, grants can be truly helpful. Aside from finance, grants add up to the investor’s credibility. When he or she has credibility, it will be easier on the part of the investor to find prospective tenants and clients. Introduction of grants like professional training and technical assistance are also proposed.

If these proposed grants are implemented successfully, it would greatly contribute to the growth and development of the trade in an instant.

About the Author

Charles and Kim Petty are the King and Queen of Virtual Real
Estate. For a FREE Special Report and Video from Charles and Kim
Petty and to set up a one on one strategy session on how you too
can make Six or Seven Figures A Year Buying and Selling
Properties all across the USA &abroad;in TODAY’s Real
Estate Market go to
http://www.VirtualRealEstateInvestingProfits.com or call
1-800-311-9228.

(ArticlesBase SC #882359)

Article Source: http://www.articlesbase.com/Real Estate Investing Grants

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Jan 27
Picture of the "Gingerbread House" i...

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Buying real estate with a Roth IRA has many advantages.  There are a few things you should know before you do it.

Tips on Buying Real Estate With Roth IRA

By: Robert Ruby

With the stock market in chaos many people are looking at the option of buying real estate with Roth IRA funds. There have been numerous instances where a roll over IRA buying real estate has turned into a cash cow for the investor. Not every custodian will allow you to exercise this option though.

When choosing a custodian that will allow buying real estate with Roth IRA it is always prudent to compare the varying fees that they charge per transaction. Because every act from buying the property to selling it involves a fee, literally thousands of dollars of your money could be lost.

With a roll over IRA buying real estate there always has to be a surplus of cash in the account in order for you to cover all of the costs that are associated with maintaining the property. The account custodians take advantage of the situation by charging you maintenance fees on the un-invested balance in the account.

This makes finding the right company for buying real estate with Roth IRA very important. Some of these unscrupulous people take up to 45% of the interest on this unused money for what they call their maintenance fees. The fact that there is no maintenance involved does not seem to deter them from taking this undeserved profit.

Making more money for you and then keeping it is the whole point of a roll over IRA buying real estate. The reason that this program has begun to catch on is because it gives you the ability to get larger returns on your dollar than traditional investment plans do, but if you are being charged a ridiculous amount in fees then you won’t get nearly as much back.

One of the advantages that draw people into buying real estate with Roth IRA funds is the fact that your contributions are taxed as regular income. There is no capital gains tax, no income tax, and no qualified distributions tax on any of the earnings that you make from this account.

If you have a roll over IRA buying real estate is a great option for you with the right custodian. The companies that offer you a no cost set up do not give you the option to do this however. What they do is manage stocks and bonds for you, and they charge you outrageous amounts to do so.

The start up fees on accounts that allow buying real estate with Roth IRA are usually pretty reasonable, and the annual maintenance fees are determined by the total value of the account. The amount of money that you can make through using this method is limitless.

A roll over IRA buying real estate could be your ticket to the kind of financial freedom that you’ve always dreamed of. Just think of all of the worry free money that you could be able posses once you have decided that buying real estate with Roth IRA is the right financial path for you to follow.

About the Author

Robert Ruby invests in Real Estate and researches the best way to find capital for his investments. He buys property with no money down, and also uses the assets in his 401K and IRA accounts to invest in Real Estate. He invests in a company that offers turn-key investing in Real Estate. This company is different because it offers Socially-Conscious Investing To Empower Urban Communities. Go to his website at http://www.increase-ira-returns.com/ to find out more about the company that has proven itself over and over again to help grow wealth. Or go to his website at http://www.buying-cashflowing-realestate.com/ for info about credit investing.

(ArticlesBase SC #664089)

Article Source: http://www.articlesbase.com/Tips on Buying Real Estate With Roth IRA

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Jan 26

New home across the streetThere are many ways to invest in real estate and each different technique has various tools that can be used to assist in the research, purchase, and selling part of investing.

Using the Right Tools in Real Estate Investment

It is essential to learn the real meaning of real estate before we know about the tools used for making any investment in a property. In other words, let us first learn about the acceptable definition of the term real estate.

The term ‘Real estate’ is commonly used in both the developed and developing countries. It is widely used in the US, Canada and Britain. Real estate refers to a land along with something that is permanently fixed on it — housing apartments, commercial complexes etc. It is also known as ‘Real property’ or ‘Realty’. In legal parlance, the term ‘real estate’ connotes land with fixtures but is different from the word ‘Real property’ that signifies ownership rights of the land.

You need to remember that the tools and strategies can differ depending on the geographic location and the prices prevailing at that particular period of time. So it is recommended that you use discretion and decide the right time to invest in real estate.

As you may be aware, there are several tools about investing in real estate. Investment done at the right time with appropriate tools can boost your profit expectations sooner than later.

Let us now learn about the right tools for making investments in real estate at the right time.

• Financial condition: As a first step, it is necessary for you to make up your mind about the kind of investment. Plan whether you want to make huge investment and wait for the right time to get good ROI (return on investment) on resale. Or do you intend to invest less and ensure that there is no loss in the succeeding months.
• Market scenario: It is, indeed, imperative to keep a track of the emerging market situation. This is necessary because the geographic location of the real estate and the fluctuating prices in that particular place can impact the investment and ROI both.
• Investment analysis: After you have already made the investment, it may be sometimes necessary to discuss with an expert in finance about the prevalent trends. An expert can make proper analysis of the current and future scenario about the investment in real estate. He can also analyze and explain about the corrective steps if needed.

At this stage, let us note some main strategies that you can adopt before investing in real estate.    –more

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Jan 25

VacatedThe real estate bubble burst, but that does not mean there is nothing left in real estate to make money with. In fact many real estate investors are making more money now than they did when the bubble was still getting bigger.

Savvy Real Estate Investors Find Opportunity in Post Bubble Market

By Philip Elmes

Bubble, what bubble? After over a year of speculation and dire predictions, the “bubble” analysts and the media talked about arrived and, in most markets, has passed. East and west coast markets, Florida and elsewhere, indeed stalled and prices “adjusted” downward. In some markets prices have declined by 30% or more, a roll-back in pricing to 2002 and 2003 levels. Most experts suggest this “deflation” of prices is a healthy easing of a speculative push in home prices not related to traditional housing demand prices – speculators gaming the system.

Midwestern markets–notably including metropolitan Chicago and Milwaukee–were only lightly affected by this speculation, particularly in low and moderate income neighborhoods. While gentrifying neighborhoods will experience rising median prices, middling neighborhoods continue to appreciate at more historically validated annualized 3-4% rates. True (long term) Investors rely on little more.

The passing of the bubble marketplace psychology did affect the wholesale market in distressed housing of particular interest to savvy investors. A happy response to the popular belief that the “bubble” has burst, is the departure of those playing the speculation game in the distressed housing market. Those of us in for the long haul got our marketplace back.

And for many that marketplace of choice is Affordable Housing, housing where the cost of ownership (or housing, in general) falls within the 30-35% of household income recommended for generations to those seeking household budgeting advice. In communities across America the loss of affordable housing due to rapidly increasing property values constitutes a serious community development problem. Real estate investors and developers who are willing and able to address this problem as an opportunity will prosper.

Savvy investors understand that when it comes to Affordable Housing, the market never goes away. That market is less “interest rate sensitive” and the demand is always there. Working class families and first time home buyers will always seek out decent housing they can afford regardless of media hype focused on trendy speculation. Investors and rehabbers attending to these practical, fundamental housing needs will find a ready market.

Phil Elmes has been a real estate developer and broker since 1973. Beginning in early 2000, Elmes has conducted a real estate training and coaching program, The Urban Rehabber Program, based in Chicago. The program features monthly networking sessions, a Seminar and Workshop series, and a Membership Program featuring added benefits. It is conservatively estimated that Urban Rehabber Program participants have completed well over 1500 homes since the program’s inception. A free e-newsletter is available via the http://www.UrbanRehabber.com web site.

Article Source: http://EzineArticles.com/?expert=Philip_Elmes
http://EzineArticles.com/?Savvy-Real-Estate-Investors-Find-Opportunity-in-Post-Bubble-Market&id=1950159

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Jan 22

middle meadow walkIf you have been involved in real estate for a while then you know that disputes happen. Some people feel they were taken advantage of or they don’t honor their end of the deal.  Sometimes no amount of talking of negotiating will work and you have to take it to the next step.

IS ARBITRATION AS GOOD AS YOU HEAR?

Sometimes, despite your best efforts, your commercial real estate dispute must be resolved by litigation, not negotiation. At that time, one of the first steps to be taken is to read your agreement and determine whether there is an “alternative dispute resolution” or ADR provision.

Although there are other procedures such as judicial reference, if there is an ADR provision, you can generally expect it to be a binding arbitration. If you have agreed to arbitration, what can you expect?

On this particular matter, I turned to one of my collegues, Jeff Brown, a partner at PNM and who is an expert on this subject. His advice:

Expense: Is arbitration as inexpensive as you’ve read? That depends. If your arbitration provision allows for significant discovery, such as depositions, your arbitration may not be that much more efficient than litigation. Discovery is usually the most expensive part of litigation, and there are arbitration provisions which allow the parties unlimited discovery or, to a more limited degree, discovery as determined to be for good cause by the arbitrator. Drafting pointer: you can control the expense of future arbitrations by limiting the discovery that is allowed by the parties the next time you negotiate an arbitration provision.

Selection of Arbitrator: First, check your arbitration provision. All but the most limited provisions provide a method for selection of the arbitrator. The decisions regarding the arbitrator selection include whether a single arbitrator or multiple arbitrators (usually three) is to decide your dispute; what qualifications must the arbitrator have (e.g., a retired judge or someone who has significant real estate experience), and if the parties cannot agree upon the selection, how does the arbitrator get chosen. In California, the steps for selection are (1) the parties agree; (2) if they cannot agree, then the arbitration service agreed upon by the parties (e.g., JAMS or AAA) uses its rules to select; or (3) if neither the first or second steps lead to the selection of the arbitrator, then one or both parties ask the court to make the selection. Drafting pointer: Make sure you include the number of arbitrators, their qualifications, and the method to be used to select them in your ADR provision to avoid unnecessary delay in moving any future dispute toward resolution.    –more

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