Finance Tips

After a surge in mortgage applications last week in the U.S., we may expect to see a slow but steady recovery for the mortgage industry, which has been adversely affected by the recent slump in the housing market. During the week ended October 2, the Mortgage Bankers Association’s (MBA) index of applications to purchase a home or refinance a loan increased by 16% to 756.3 from 649.6 in the previous week.

This increase in mortgage applications has mostly been fueled by lower home prices, falling mortgage rates and tax credits for first-time buyers, which have collectively contributed to an increase in home sales. This should, in the long term, contribute to a slow but steady growth in the mortgage and real estate industry.

During the same period, the MBA’s refinancing gauge rose by 18 percent, as the number of applicants seeking to refinance loans rose to 66.3 percent of total applications from 65.3 percent, the highest since May this year. With mortgage rates falling below 5 percent, many applicants are finding refinancing to be an attractive option as they want to lock in the low rates before they start going back up again. Continue reading ‘Slow But Steady Recovery Expected For Mortgage Industry’ »

The Internet is practically a treasure trove of ideas and information that can help an aspiring investor. There are web sites that offer a crash course on real estate investing while others provide instructional materials such as e-books, articles, and various write-ups. For those who aren’t fond of reading written manuals, do not worry because watching instructional videos on video-sharing sites can definitely help improve your knowledge of real estate investing.

Reading the blogs and online journals of successful real estate investors can also boost one’s skills in flipping houses or buying and rehabbing fixer upper homes. Many of those who made it big in the business are sharing their secrets with fellow investors just to be of great help to these people.

Over the years, the Internet has played an important role in the development of real estate investing. Aside from providing brokers and realtors with all the resources they need to succeed in the business, the Net has also helped homeowners sell unwanted properties and market them to attract buyers and meet potential business partners.

Investors can also count on the Internet to find financers for their business. As we all know, real estate investing mainly involves buying and reselling homes. An investor wouldn’t succeed in the business if he couldn’t find the means to buy the property that he wants to resell at a higher price. This is why he needs the assistance of a hard money lender and the Internet is the perfect place to look for one. Continue reading ‘The Role of the Internet and Rehablist in Real Estate Investing’ »

Contrary to popular belief, you don’t need an IQ of 300 just to get started in this business. All you need is to know the basics of flipping houses, have patience and dedication, and a good eye for properties. There are some real estate investors who started out on the business below the age of 20. If they can do it, so can you.

To help you launch your career in the business of flipping houses. Listed below are some useful tips and pointers:

• To avoid starting off at the wrong foot, one of the first things you should do is to pinpoint your target neighborhood. As a first-timer, it is better to start slowly but surely. If you would waste your time wandering aimlessly and visiting every neighborhood in the city, chances are, the competition might have already grabbed a great property and flipped it for profit. Continue reading ‘Making Your Way in the Business of Flipping Houses’ »

Owning a rental property is a great way to get ahead in today’s financially unstable world. One can buy a property with a very minimal down payment when compared to the total value of the asset that you will be renting out, well selected rental property will generate a positive degree of regular cash flow, and with each monthly mortgage payment the principal balance of the total mortgage debt decreases. Over the 30 or so years that I have been in the business I’ve seen many fortunes made from persons buying one or more rental properties, and numerous statistics seem to support the stance that the gross majority of high net worth persons own some form of investment real estate.

So, whats the problem? In order for the system to work properly good, responsible, paying tenants are required and this often scares inexperienced landlords away. Unfortunately, it seems that you will never be able to enjoy good tenants all the time. Tenants cause grief to their landlords in an infinite number of ways, but usually these issues can be derived to one of the following: 1. Your tenant won’t pay their rent and 2. Your tenant is damaging your property. It’s been my experience that most good, “strictly business” minded landlords won’t care about the majority of other issues that arise from tenancy issues outside of these two points.

The first piece of advise I can offer is this, “Don’t call a Lawyer”. This may seem strange coming from the owner of a large property management firm like myself who has an in house lawyer on payroll. Having hired lawyers in the past to evict bad tenants has almost always provided our firm with bad value. Legal fees are almost always high enough that the cost of the fees will be higher than the amount of the judgment you will be able to get from the tenant and, in general, evictions are simple and most firms will instinctively arrange for an inexperienced or student lawyer handle your file. For $3500 this seems ridiculous, but there is no shortage of such files for law firms and as such, they tend to focus on larger more lucrative files. Continue reading ‘Dealing With Problem Tenants’ »

During the month of October we have seen a couple shifts in a 30-year fixed rate mortgage, for the good of the consumer and real estate market. During the first week of the month, we saw the rates drop down nearing all time lows since about Mid 2009, when the rate was at a 4.82 percent. On the 8th it was said by representatives of Fannie Mae that the rate had hit 4.87 percent, almost a whole percent lower than last year.

The 15-year fixed rate also hit a low, at 4.33 percent, also a lot lower than it was this time last year. And also the lowest it has been since 1991, when the Market was at its peak.

Just because the rates are nearing an all time low, doesn’t mean lenders are going to give out loans to just anyone. You still must meet the high standards of the lender, and keep in mind, standards of borrowing vary by lender. They still want to be sure that they are going to get full repayment of any money borrowed. Having a solid credit score, income, and down payment are just a few of the things that lenders are really looking for in order to even consider you for a loan. Continue reading ‘Mortgage Rate drops for the seocond time in a month’ »

Self Help For Loan Modifications

U.S. Loan Modifier announced today a partnership program with Online Global Concepts in a joint venture to help home owners solve their loan modification problems. “Today we are kicking off a new program that allows home owners to submit requests for loan modifications directly with their lender, but having their request professionally prepared for them ahead of time” said David Wilson of www.USLoanModifier.com. The program is like no others, the home owner receives a free consultation to see if they possibly qualify for a loan modification before they pay any preparation fee.

Online Global Concepts, at www.OnlineGlobalConcepts.com, has been providing people with information concerning credit repair, getting out of credit card debt, establishing credit the correct way and more. Several months ago they expanded their offerings to help with the national crisis in the mortgage industry and offer several informational books on how to proceed with a loan modification yourself. “They wanted to offer an alternative” Wilson continues, “but didn’t have the background so we stepped in to implement the new program.” Continue reading ‘Self Help For Loan Modifications’ »