Homeownership can be a great experience if you approach it the right way. One easy step you can take to make sure you protecting yourself is get a fixed rate loan. A loan that is fixed for the entire length of the loan. Here are few reasons I feel are some of the major benefits to a fixed rate mortgage.

Security: Let it be a lesson for us who have bought a home with money down and got into an adjustable rate mortgage that was fixed for a teaser period of 3 to 7 years. There are no guarantees in life and especially right now in the real estate market. Many homeowners home values have plummeted and left them with loans that will adjust and leave them unable to refinance into another fixed loan. Like I have said before your mortgage will most likely be the biggest financial obligation of your lifetime. Play it safe!

Cheap money: The current mortgage market has great rates right now. Fixed products have been below adjustable rate products to promote better lending and a more stabile economy moving forward. Rates are lower than they have been in years so it is a great time to take advantage of some great deals.

Protection Against Market Swings: Even if your plan is to stay in the house for 5 years when you get your loan by getting something fixed that you can afford you have a built in safety net if things change 4 or 5 years later and you need to keep you current loan. We all hope that we have the foresight to see the trends in the real estate market but sometimes things happen that are out of our control so it is better to just be safe from the beginning.

Paying Off Your Mortgage Balance: Remember the days when people actually paid off their loans?!? The way they did was by getting an affordable fixed rate loan on a mortgage amount that was in their comfort zone and holding on to the loan until they paid it off. I have said this before but I feel compelled to reminder people; mortgage interest is frontloaded. This simply means that the mortgage lender piles the majority of the interest on your loan onto the first few years of your payment. Interest is NOT spread out evenly over the life of the loan. Here is a simple example. If you have a $2000 mortgage payment in your 1st payment about $1980 dollars will be applied towards interest. On your last payment $1980 will be applied towards your principal balance. The moral of the story is to get into a fixed loan so you only pay the first few years of interest heavy payments once. If you keep getting short term ARMs and refinancing you are starting all over every time you do that.

There are a few independent instances when a fixed rate mortgage may not be the best option for you. Those instances are very few and far between so sticking with this mindset when you are investing in real estate will cover you in any market situation.

Make your home a fun investment. Borrower safe!

The opt Okay, so it finally hits you that investing in real estate is the best possible move you can make with your money. With your heart is set on buying an apartment building, your search

The answer is simple; use, use and use. Use is possibly the most important factor in terms of the property’s value. For your investment to be a success, you need to think of the building’s use for you as well as for your tenants. Hence, you need to also put yourself in the shoes of your customers, i.e. your tenants. To kick start things, first attain information on the demographics of the area in which you want to invest in. This should give you a basic idea of who your target audience is and will also allow you to build a general profile of your typical tenant.

With that profile in mind, think then of what the average tenant would need if he/she lives in your building. For starters, regardless of who you rent out to, people will always need basic amenities near by. Thus, you have to ensure that the apartment building you buy is located near a grocery store, entertainment facilities, medical facilities and the like. You should note that although people might have cars, they won’t like driving for more than 10 minutes to get the basic necessities. For example, in an emergency situation, no person would like to drive more than 10 minutes to get to a hospital.

Following the universal needs, you need to look a little more closely into the profile you have outlined. The more you breakdown this profile, the greater will be chances for success. For instance, if currently you feel that your building will primarily be occupied by families, then you should study the demographic data carefully to figure out what kind of families are we talking about. Will the families be newly married couples or families with school-going children? If it’s the former of the two cases, then your building should ideally be located near a good quality daycare center. Meanwhile, if it’s the latter of the two cases, then you will be best positioned if the building is a near a good quality school.

Use is possibly the most important factor when one is to make a purchase. Combine that with customer profiling, and you have the recipe for success. However, always remember that you shouldn’t venture outside your comfort zone unless you absolutely have to. Comfort zone here refers to areas with which you are familiar and have possibly had experience in previously. This point is important always but even more when you are initially starting out as a real estate investor. When starting out, stick to what you know and try out new things only when you feel you have a handle on the situation. And always, always, keep your eyes and ears open to absorb whatever information you can about your location so that you are never left in the dark.

The recession has had a negative impact on the majority of businesses here in the United States. It has unquestionably changed the way some businesses do things. But there is at least one vital aspect of business that we business owners cannot allow the economy to change.

One of the most important trends I consistently noticed in my real estate business was the number of homes sold as a percentage of leads generated.

This one finding completely transformed my business because it allowed me to narrow my focus. Bill Gates and Warren Buffett have both said that “intense focus” was the key to their success.

Before my numbers breakthrough, I ran around every day like a chicken with its head cut off. I chased every single shiny object I saw. I would hear a new idea and I would be off to work on it. I didn’t focus on any ONE thing and therefore I didn’t make any real progress.

Based on my coaching and consulting to hundreds of real estate agents, I’ve noticed that the majority have the same problem. Especially now in these economic times, people tend to chase whatever opportunitythey think they can get their hands on.

There are a lot of shiny objects out there that we are tempted to chase. You know what I’m talking about, don’t you? Tracking my numbers allowed me to break out of this cycle of chasing elusive “opportunities.” I finally realized that the single most important thing I could do each and every day was to:

Generate New Leads for my Business

If 100 leads turned into four home sales, then 200 leads would be 8 sales. I finally had instant focus. I realized that I didn’t need fancy business cards or the latest “smart” phone to check the listings on the road.

I simply had to generate leads every single day.

This lesson has been ingrained in me every since. Lead generation remains my No. 1 business focus. I do something every single day to generate new leads. Generating leads for your business is like feeding your body.

Don’t feed your body, and it starves. Don’t feed your business new leads, and it dies.

I realize the housing market is slow. Don’t use this as a reason to stop marketing. This is a big mistake.

In fact, I am suggesting that you market more now than you have in the past. I’m marketing my business more right now than I’ve ever marketed it before. In fact, I’ve increased my monthly lead generation goals from 2008.

It’s that simple: If you want to sell more, you have to generate more leads.

Unknown to most home buyers, the agent showing you homes can offer you two forms of representation. Your real estate agent could be working directly for you as in a buyer brokerage arrangement or they could be working in the vendor’s best interest if it is a sub agency arrangement.

In the buyer brokerage arrangement the real estate agent’s sole allegiance is to the buyer, not the seller. In a sub agency arrangement the real estate agent’s legal and fiduciary responsibility is to the seller, not the buyer. The reality is that hardly any buyer agrees to a sub agency arrangement now a days, it is almost exclusively a buyer brokerage arrangement.

A buyer’s real estate agent is usually compensated by the vendor through the listing broker. The buyer brokerage agreement that you sign will clearly outline the payment of commissions. As the purchaser it is your responsibility to discuss these different arrangements with you real estate agent.

In the vast majority of cases the selling agent also gets paid by the vendor through the listing broker. Commission is normally discussed and agreed upon when the vendor lists the property and it covers the purchaser’s and vendor’s agents. When this is the arrangement (as it is in the majority of situations) than as the purchaser it does not cost you anything to use a real estate agent.

Dual agency is another possible arrangement you may find yourself in as a buyer or seller. This is when an agent brings both sides of the deal together. One of his/her clients wants to buy the property of another one of his/her clients.

As the buyer what you should do to avoid any conflict of interest is keep the highest price that you will pay confidential from your real estate agent. As your agent has a legal obligation to disclose to the vendor any know price information. This works both ways though, as the vendor you would have to keep your lowest price confidential as your agent would have the responsibility to disclose that information to the purchaser.

In a dual agency situation most of the vendor’s information will remain confidential. The agent does not need to disclose the vendor’s motivation to sell, number of offers, value of other offers, or negotiation strategy. On the purchaser’s end some of the information will remain confidential. The agent does not need to disclose the buyer’s your urgency to buy, details about other offers they have made and their negotiation strategy.

The single greatest impact of a dual agency situation is that you as the purchaser or vendor should not disclose your final price to your agent. It may sound like a sticky situation but in the end it is pretty straight forward and should not impair your ability to buy the property that you want.

Recently an appraiser wrote on a blog that he had paired the online foreclosure databases (found at either Realtytrac.com or ForeclosureRadar.com ) against the statistics found in the local Realtor MLS (multiple listing system) inventory and noticed something rather sinister: the datasets didn’t reconcile.

He discovered that the number of foreclosures posted in Online sites far exceeds the sum of listings and sales found in the realtor multiple listing system by about 70%. Does this really mean that 70% of foreclosures posted in onlines databases ARE NOT listed or sold? If so, what might be happening to these homes? Are Lenders holding the foreclosures back from being sold because these Zombie banks are insolvent and can’t afford to take the losses? Or is something else happening? Well, here are three other scenarios which may help to explain the data disconnect.

1. MisInterpreted Data. Most internet websites will usually count a home as being a foreclosure when the homeowner has missed making three payments and a Notice of Default has been recorded. They don’t take into account the fact that a homeowner may still be able to reinstate the loan and take the property out of foreclosure. Thus, the homeowner may never have needed to list the property in the realtor multiple listing service to begin with which is why it doesn’t show up in the realtor MLS system, and yet shows up as an online foreclosure.

2. Short Sales. A short sale takes place when the owner wishes to sell the property at fair market value, but owes more than what the home is worth. After finding a purchaser and collecting his financial data, the homeowner then makes a request to his lender(s) to reduce the principal balance of the loan(s) so that the sale can be consummated. Because a Lender often takes about 9 weeks to review the owner’s application and purchase contract, the Lender can appear to be acting like a Zombie. The auction date for a short sale may be waived by the lender or extended in order to close escrow, and for this reason it can appear that the house may be at eminent risk of foreclosure on an online site ” yet not show up as either a listing or sale on the realtor’s database.

3.Loan Modifications. In addition to short sales, many properties will show up as foreclosures in Realtytrac because the owners are behind in their payments when in reality the owners are simply in limbo waiting for his zombie lender to modify the loan. Owners are often told to miss a few payments to obtain a loan modification, the approval may take several weeks and the property will not be a part of any MLS statistic.

The possibility also exists that other logical explanations may exist for why some homes that are foreclosed on don’t immediately show up in the marketplace. The lender may be trying to collect money from an insurance claim, or there may be government banking regulations involved. Then again the idea of a bank filled with over-worked Zombie-like personnel waiting on customers like a scene ripped out Night of the Living Dead doesn’t seem too far-fetched these days, does it?

The other night, it was my turn to cook dinner so naturally I did a Google search for dinner recipes. After all, dads like me need a little help to bring the gang to the table and ensure that they’ll stay there! Sometimes when it comes to loan modifications, most folks will take the word of the foreclosure helper — not realizing that there are as many varieties of scams as quick pasta dinner recipes on the Internet! Today we’ll discuss just three loose loan modification scam categorizes:

Spirit Helper:

The scam artist pledges to the homeowner that for a fee, he will be able to cut the owners payments by a third. Then after taking the owners money, the scammer vanishes like a waiter in an expensive restaurant - never to be seen or heard from again.

The Rescuer Technique:

The homeowner is saved from his dilemma by the generous helper who offers to bail him out. Often the helper needs to take title to the property in order to modify the loan, and promises to lease the property back to the homeowner. Then when the owner is able to purchase, he will be able to purchase the property back again. Sounds good, right? Usually the scammer ends up not honoring the agreement, and simply kicks out the owner. Or the helper rents out the property until it is foreclosed upon and keeps all the rent receipts for himself.

Bait-and-Switch:

In this scenario, the homeowner is usually persuaded to do one thing but ends up doing another - like signing a deed and giving up his interest to the property. For example, the scammer might tell the homeowner that he needs to sign a power of attorney to negotiate with the lender to do a loan modification. Then after signing it, the helper uses the power of attorney to evict the owner from the property and rent it out.

In addition to the above categories, there are many other types of foreclosure-related scams, including forgeries, theft, identity theft, property flipping scams, loan fraud, predatory lending practices, pyramid schemes, ponzi schemes, bankruptcy fraud, landlord-tenant fraud, short sale consulting fraud, and bank-owned property or REO fraud.

Therefore, if a helper asks for money upfront before providing any service ” beware. If he asks for payment only in the form of cash, cashiers check, or wire transfer”beware. If he asks for a transfer of title or an interest in the property”beware. If he gives an unqualified promise to stop foreclosure or other assurances “beware. If he offers to buy a home for a price above its market value–beware.

Just as one would be wary of eating raw fish as a restaurant with a quality rating of D ” when it comes to foreclosures, short sales and loan modifications, you should be extra cautious with people offering their services to help you too!

Being a homeowner at some point you may decide to get some renovations done on your house, and during the renovations you will realize the rubbish, paint stains and other bric-a-bracs strewn around the house along with the unwieldy implements being used which attribute to damaging the furniture, paint, and other personal belongings in the house.

As an owner if you are living in the house during the building period, you need to be proactive about making sure that there is no damage occurring to your house or to valuables in your house which may require extra money and time to get fixed later on. You can take a few precautions to keep yourself safe from facing this situation by following the tips below:

1. Start the renovation process from one room or region at a time. If the entire project is started together, you will lose access to most of the house. Moreover, getting things done regionally is simpler, especially if you are living in the house while the renovation is being done. The region where the work is happening should be sealed off from the rest of the house to prevent dust from spreading everywhere. Close all doors and windows, and tape plastic over them. Make sure you also cover vents, grates, and heating ducts.

2. Move everything that can be easily removed from the construction area. This may comprise of appliances, kitchen items, personal things and toys as well as small furniture pieces etc. Cover everything left in the area with plastic sheets, and spend in purchasing temporary covering materials to protect items during the renovation process. You can get foam to cover door frames and railings, as well as adhesive sheets for floors, windows, worktops, and other areas. These will avoid any damage from happening which may take place as a result of any heavy object striking them while being moved, or from paint spilling accidentally on them during a paint job.

3. Put a damp mat outside the door leading to the building area to catch the dust from the dirty shoes that would otherwise track dust into the house. You can also ask the builders to lightly mist the surfaces before they start work to reduce the amount of dust that may rise in the air.

4. If you have a garden, cover it with a drop cloth to save it from debris and damage. Furthermore, this will keep lead from getting into the soil. Set up boundaries that you want the builders to avoid by marking them with tape. Make sure you tell them to keep any supplies they get away from this area. This will go a long way in protecting your garden.

5. Make sure, the workers cleanup the work site when they finish for the day so you can use the area in the evening. Collect all the rubbish and dispose it every day to prevent it from stacking up.

Protecting your home during a building project is not very difficult if you plan beforehand, and make sure that the builders follow your instructions. By following these tips you can keep your home in perfect condition even while it is undergoing renovation.

Living in an apartment brings a whole new meaning to the old saying that necessity is the mother of invention. Space is limited at best and if youre living with others, it can be downright scarce. Heres a few space saving tips for apartment living.

Use only as much appliance as you need. If youre single, a small refrigerator and freezer combination will be all the cold space you need. The same holds true for a washer and dryer. Get a stackable unit in a small size that will accommodate your clothing. Taking up much-needed apartment space with an oversized washer and dryer set that is seldom filled is only a waste of both money and space.

Have the space under your bed do double duty. It can keep you off the ground but also serve as a great storage space for shoes, sweats, or anything small enough to fit. Large, flat plastic storage boxes are ideal for under-the-bed storage.

Install floor-to-ceiling shelving. This will get a lot of your loose stuff up off the floor where youll always be tripping over it. Utilizing the vertical space in your apartment as well as the horizontal space is a great way to get rid of the cluttered appearance.

If your phone wont fit on a shelf, hang it on the wall. Its the same principle. Go up the wall instead of out into the room. Substitute climbing plants like philodendrons that require only a small pot and a place to tie them up along the shelving and avoid plants that need big pots and a lot of floor space.

Store as much of your personal property off site as possible. A storage unit under lock and key can be a real answer to the need for more space. Put items that you dont need on a daily basis or that you wont need during the current weather conditions into one of these usually dry, secure compartments.

Allow for a small closet to be the junk collector. A tidy closet is just the out-of-sight place to store anything and everything that is otherwise out in the open where you dont want it. Make sure the door stays shut to keep what is out of sight, out of mind.

Expand where you can. If your apartment has a patio, use it, weather permitting. Some furniture does fine outside during summer weather and may even be okay if its covered with a large plastic tarp or fitted furniture cover when the weather isnt so nice.

If you can afford to buy food in smaller containers, do it. A small box of Cheerios takes up a lot less cupboard room than the family size box.

After the the mortgage crash in the fall, industry analysts saw real estate values plummet by over 18%. Many homeowners have watched their real estate values plunge downward to below the level that they bought the place for in the first place. But it has also produced a buyer’s market for savvy consumers who would like to take advantage of the low housing prices to buy a home now.

Housing prices crashed as far as eighteen percent according to one report on this real estate market. Homeowners who once regarded their house as a nest egg are now seeing their homes being valued for much less than what they could have gotten during the real estate boom. Many homeowners are trying to deal with the fact that their home’s value may be lower than the purchase cost.

As property values have gone down, so too have new home starts. The number of foreclosed homes available has flooded the market with available homes that are inexpensive as banks and other lenders are willing to let these homes go for considerably below their worth. With housing values going down, a lot of buyers are seeing an opportunity to get into the housing market and go hunting for a deal.

With real estate prices going down, affordability has become more important than ever. If consumer were sharp and had laid aside a substantial sum of money to put down as a down payment, they can probably get financing provided they have a good credit score. While banks might be falling over, there are plenty of other institutions and federal entities that are lending to qualified buyers.

Homeowners who were considering putting their house on the market are thinking twice about doing so considering the reduced housing values right now. They also realize that they may not get their asking price, but substantially below that. The current real estate market is clearly not a good time to sell, unless you have to because of financial trouble.

The low property values coupled with the record count of foreclosures, bad new housing start statistics and sluggish home sales spells out a dark picture for the real estate market. While low property values are not a good omen for the economy as a whole, they do deliver an opportunity for individuals who can actually buy a house in these times. With property values so low right now, bargain hunters are sure to find something that they like, provided they can get financing and are prepared to put down a large down payment.

Foreclosure is almost anywhere and so is the opportunity to profit from them. There’s indeed money in REO. But one should know how to get a good deal and profit from these Bank REO’s or Real estate Owned.

Banks are not in the business of selling properties and they wouldn’t want keeping long list of foreclosed properties. They will, as quickly as possible, sell these properties to anybody who is willing to give a good offer, even below the current market price.

Banks are incurring expenses for keeping REO’s. This is the reason why they would want to offer the properties even below the current market value just to get rid of it and stop losing money.

Foreclosed properties are often in good condition. They were foreclosed because of the inability of the owner to pay his obligations. These properties can still be in good condition and will save you money in buying them or even help you gain profit from them.

Banks are not in the real estate business, they do not like playing landlord and want to get their money back as quickly as possible. Bank REO’s are a burden on the liquidity of the bank and they may speed the process up by making terms more favorable for the investor.

REO’s are often sold “as is” but you can ask the bank to shoulder the expenses for repair or deduct it from the total purchase price. Most bank would agree with this arrangement rather than losing on an important deal.

When a homeowner is not able to pay his or her mortgage, the bank may decide to take back the home. This is also called a foreclosure. Different states have different guidelines on how banks can foreclosure on a property.

It’s safer to buy an REO. Before making your final offer, you can inspect the property and check if it’s worth your time and money. You may negotiate with the bank as to whoever shoulders the repair expenses.