Rarest Words

“Virtual Real Estate Investing” is a relatively new concept. Everything from using the internet as an avenue to make more money in real estate to online games such as SecondLife seem to be included in the popular definition of this term.

To find out the real story, I had a conversation with Bryan Ellis of BryanEllis.com, widely considered to be one of the originators of the concept of Virtual Real Estate Investing.

When I began using the term virtual real estate investing in the late 1990s, I did so because I saw clear parallels between the strategies used for profiting from physical real estate and those that would create income in the online world, said Ellis.

One example of the parallels between virtual and physical real estate Bryan Ellis cites is the similarity between the monetization of domain names versus physical property. He points out that control of a domain name or even a specific web page is much like controlling a real estate property ” those assets can be monetized in similar ways: By selling them for a profit, by leasing them, by offering advertising, etc.

The similarities really are obvious. For example, if you’re the owner of a desirable property, its desirability is (in a business context) largely due to its being in a location that is of interest to others. Likewise, if you own a desirable domain name, others will find value in it because it serves their purposes. Regardless of the type of asset, you can sell or lease or use any number of strategies to turn the assets into cash.

In our next installment of this series on virtual real estate investing, Bryan Ellis will share the internet analogies to the physical concept of real estate development.

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Real estate investing is increasing at a staggering rate these days. More and more individuals are learning that real estate investments can offer wonderful earning potential. Real estate investing is a process which has many attractive qualities that make it a viable money-producing opportunity. There are a number of benefits that go along with purchasing real estate investments and the following paragraphs will highlight some of these benefits. As you will see these attributes make it quite apparent why individuals are becoming interested in investment opportunities of this type.

Build Equity in the Property
For those individuals who are looking to invest in real estate on a long-term scale, there are certain benefits to doing so. When individuals purchase real estate and hold onto it for awhile, they are ultimately able to build a good deal of equity in the home they are purchasing as an investment property. Equity is a beneficial aspect for the homeowners as the more equity a property has, the more that it adds to the net worth thereof. This is an important and frequently cited reason why individuals do choose to invest in real estate and maintain the property as an investment for a long period of time thereafter.

Possible Tax Advantages
Another benefit of purchasing real estate for investment purposes is the possible tax advantages that one may receive as a result of owning the investment property. Depending on a variety of factors, individuals who own investment property may just see some gracious tax advantages as a result. Therefore, individuals may be more than ready to invest in real estate once they have looked into possible tax advantages that result from engaging in a transaction of this type.

High Rate of Return on the Sale of the Property
When the investment property is sold somewhere down the road, the homeowners will most likely see a high rate of return on the sale of the property. Depending on the market at the time of the purchase and sale, this rate of return may be more than generous when one looks at the profit margin. Some factors to consider if looking to purchase property and sell it within a short period of time after the initial purchase include current market for property sales, renovations and upkeep necessary to get the property ready for the sale and ability to hold on to the property longer if a sale does not come as quickly as one had expected. If one has considered all of these possibilities and still feels that they will be able to sell the property quickly, then this is a wonderful benefit of real estate investment.

Lease the Property to Tenants
While some real estate investors choose to purchase the property and then sell it shortly thereafter, there are other individuals who have a different reason for purchasing investment properties and wish to obtain a profit by other means. These individuals are ones who prefer to purchase the property and then lease it out to tenants. By doing so, the homeowners are able to pay for any mortgage which may be present on the property plus receive any additional income from leasing the property to tenants.

Investing in real estate is a wonderful way to gain equity in a piece of property, take advantage of possible tax benefits and maybe even make a considerable profit from the sale of the property once the individual feels like doing so. These are some of the many reasons why individuals are purchasing real estate as investment property and current low interest rates make now a perfect time to buy. The benefits of real estate investing are difficult to pass up, so go ahead and find your first real estate investment property!

Ken Smith is a real estate agent that runs
one of Chicagolands top real
estate teams. He has also started href="http://www.webnewsforus.com/blog/" rel="nofollow">WebNewsForUs.com, a site that is
dedicated to real estate agents learning to use their websites to grow a
profitable business.

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Maybe we should take our home off the market during the holiday season. Nobody buys houses during the holidays Thanksgiving, Kwanza, Hanukah, Christmas, and New Years. Maybe you don’t but sales can and do take place at this time. Life events take place every day one of them could be the sale of your home.

Seller Tips:

• Holiday buyers are serious, usually ready now to buy and close. You must not let your guard down. Be ready for a buyer every day, expect the appointment call for a showing, we all know the calls come when you are not ready.

•These buyers maybe transfers or job related and knowing they want to be able to get the kids into school right after the break not missing any time. Be ready to close quickly and move on.

•Honor your beliefs, but remember we are selling to Mr. & Mrs. Everyone decorate home but don’t cover up your home so that the buyer can’t see themselves in it.

•Work with your agent or better yet keep them on the ball don’t let your agent get lazy. Ask questions about your advertising; invite him or her over to critique your home as a potential buyer.

•Keep safe, there are others who are not buyers who use your for sale sign as an excuse to be in your home this time of year. Put gifts away don’t leave expensive items lying about.

•If you have family visiting overnight or for an extended time please have your agent stop showings until they leave. It’s nearly impossible to keep your home looking just right with 6 or 8 guests in the background.

•Make your home accessible, clear the snow and ice completely and check it all day, keep decorations away from the doors and have plenty of space on the porch. Make sure buyers can walk around with out knocking things over. They may be so concerned about being careful that they never see your home.

•Have a great holiday season and be ready to make your sale.

Bill Carey with over 30 years in real estate sales, investments, and home building offers a unique perspective to the buying and selling process of residential real estate for F*R*E*E consumer information and reports log on to http://www.CharlotteNCExecutiveHomes.com and see
“Insider Real Estate Secrets Revealed”
…a must-read for Home-Owners and Renters!
It’s a F*R*E*E 12-lesson e-course covering more than 20 topics exposing the realities behind buying and selling a home.
It Could Make(or Save) You Thousands of Dollars

See http://www.BillCareyRealtor.com and sign up for our monthly e-newsletter with tips for buyers, sellers, home owners and soon to be home owners.

(Your Comments are Welcome)

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Are you needlessly spending hundreds of dollars more than you need to each month for your mortgage because you have the wrong loan type for your circumstances? Understand your options, and their costs. Don’t make a 30-year mistake by making assumptions.

If you’re like most people, you’ve probably been bombarded with advice by well-intentioned, although clearly ill informed people, that a 30-year fixed mortgage loan type is the only loan to consider. To dispel a long-standing untruth, a 30-year mortgage is not necessarily the best alternative for a mortgage.

In fact, this is the most expensive loan type available.

Why? The fact is that 96.5% of homeowners sell and move, or refinance, within 7 years of taking out a loan. So why force a lender to commit to providing a 30-year fixed rate mortgage when you could ‘buy’ a 7-year interest rate commitment at a lower interest rate?

The latest trend of 40-year loans might fit you even better. Or perhaps an adjustable rate mortgage with a 5- or 7-year fixed interest rate. Either way it translates into lower monthly payments for you. True, borrowing the money over a 40-year period or with an adjustable rate could result in you paying a heap more of interest if you keep the loan for more than a few years, but if you move out or refinance during the first few years, as many people do, then you’ll be coming out way ahead, financially.

So think twice before going ahead with that 30-year mortgage. It can cost you much more than other loan options.

Anthony Ferlazzo makes it easy to obtain a mortgage. He’s available to help you with your mortgage. For details and to get going with a mortgage, visit this site now: http://www.lightning-mortgage.com

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If you are homeowner considering using the equity in your home for some purpose, there are several things you need to know before committing to a loan. Here is what you need to know about using home equity.

Equity is the term used to describe the value in a home owned by the homeowner. The difference between the appraised value of your home and the payoff balance of your mortgage is the equity you own in your home. A home equity loan is a loan mortgage lenders grant you that is secured by your home. It is important to remember that even though you own the equity, the mortgage lender is allowing you to borrow against that value and will expect to get their money back.

The home equity loan you take out is secured by your home just like your primary mortgage. If you default on this mortgage your lenders can foreclose on your property even if the payments on your primary mortgage are up to date. It is important to budget accordingly to ensure you do not wind up in financial hot water. Home equity loans come in two flavors: second mortgages and home equity lines of credit. Both types have their pros and cons and allow you to borrow for different needs.

Types of Home Equity Loans: Second Mortgages

The first type of home equity loan to consider is a second mortgage. A second mortgage allows you to borrow a lump sum of your equity at a fixed interest rate. The main advantage of a second mortgage is the payments can be fixed over a long period of time; because this loan comes with a fixed interest rate the payment amount will not change for the duration of the loan.

Home Equity Lines of Credit

A home equity line of credit is the other type of home equity loan. The primary advantage of this type of loan is that it allows you to borrow less money and pay that amount back quickly. This could save you money over a second mortgage loan. The disadvantage of lines of credit is that they come with variable interest rates. If you borrow large amounts using a home equity line of credit your monthly payments will change when the lender adjusts your interest rate; this could cause problems for your cash flow if the payments rise too quickly.

To learn more about the pros and cons of home equity, and how to stay out of financial hot water, register for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of “Mortgage Refinancing - What You Need to Know,” which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com

Chicago Mortgage Refinance

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I have observed many changes in my life over the course of
living it, and I can tell you that as you grow older, Caution
will become your friend; when you’re young, you simply throw him
to the wind. As you get older, you wait for him to blow by, and
then you reel him back in, why? Caution has only a few friends,
but several adversaries: Haste and Waste; after several trips
around the block with these two, Caution begins to look like a
much better friend.

Part of the requirement for being a friend to Cautious, is that
you take the time to examine all your options, and make a good
sound decision. This is when I was introduced to Financial
Planning, 401(k) s, Retirement Funds, etc.

I’ve told this from a story standpoint, but it is in all
honesty, the truth. As you get older you do become more cautious
in your investments, with your time and your money. Interest
only mortgages are one of those options, that if you’re
investing in real estate for the short term, and you’ve
consulted with a reputable financial advisor, you might want to
consider. Investment portfolios do not generally include real
estate, so more than likely this is a business venture or an
investment business. In either situation, financial planning is
a must. This is one of those options, that should however, be
considered only after careful planning and thought. The trade
off, may be or may not be to your benefit.

Long-term investments, those with capital gains, and purposes
other than a quick profit, I don’t’ believe are candidates for
the interest only mortgage. The interest only mortgage doesn’t
offer much in the way of building and growing investment value,
because you simply never increase the value of the asset to you.
You increase the value of the loan for the lending institution,
because you are continually providing a profitable situation for
the lender. Your principal investment responsibility never
decreases.

What about the short-term implications and your financial
planning? Well, this leaves many doors unopened and many avenues
unexplored. However, given the fact that you’re considering the
impact of the interest only mortgage product on your financial
planning expectations, there aren’t very many “short-term”
considerations open for discussion. The only short-term
advantage to interest only is that your monthly payment is often
very low during the term of the interest only payment.

When you consider the impact your 401(k), an MSA, an IRA, or any
other tax deferred savings or retirement program can have on
your bottom line, the interest only mortgage doesn’t really have
that much to offer in the realm of tax savings, or tax
deferment; yes, it’s true that your mortgage interest is tax
deductible, but not on a one-to-one ratio. Tax deferred
retirement accounts, even SEPs, for the self-employed individual
have a one-to-one ratio of tax savings.

Another long-term financial planning consideration: when you
would normally have paid out a regularly amortized loan, you
will still be paying on the interest only mortgage. What could
the potential savings be, for you, if you weren’t still paying
on a mortgage? The time value of money is a concept that few
consumers ever learn to appreciate. It means the dollar you have
today, will be worth less tomorrow than it is today, therefore
saving today yields a much better benefit than waiting until
you’re 35 or 40 to begin saving and planning for retirement.
Quite often, your home is your greatest asset, and is the only
savings that many consumers have managed to accumulate. If the
only payments you have made were for the interest due on the
principal, you effectively have no accumulated savings. Now,
that might not be an issue for someone in their 20s or early
30s; however, by the time you reach your 40s, you have begun to
contemplate retirement, and ways to save for that phase of your
life.

As I stated earlier, caution and good sound financial planning
may determine that an interest only mortgage will benefit you
greatly. But, I would only consider this option only after I had
taken time for careful consideration and good financial
planning.

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Many real estate market analysts’ reports scare away beginning real estate investors. For instance, you may have read my article on a recent study conducted by Global Insight and National City. That study came to the conclusion that a significant number of America’s housing markets are, in the words of the study itself, "extremely overvalued."

Experienced investors know this negative report translates to good news in five ways:

1. Less competition from home buyers
2. Extremely motivated home sellers
3. Cooperative real estate agents
4. Hungry loan officers
5. Un-harried closing agents

The question remains: How do you still make money flipping houses in a buyer’s market?

Here are five keys to open the door to your dream investment portfolio:

1. Research and Keep Records

Become the EXPERT in your targeted geographical location. For beginners, this means choosing ONE area or neighborhood. Keep records of the following statistics:

* How many houses for sale in your specific area?

* How many sold last month?

* How many days did the house sit on the market?

* What did the house sell for?

* How much of a discount?

* What concessions did the sellers make? Call the sales agent and ask if the owner provided seller’s closing costs or seller financing.

Follow your real estate market. Look at houses for sale. Don’t merely rely on statistics from a real estate agent, your loan officer, or closing agent. When you get a list of comparable sales, check the houses out. Drive around on "Open House" weekends and see how the houses present themselves.

Whoever said "knowledge is power" knew what they were talking about when it comes to buying and selling real estate. When you know the heartbeat of your market, you will know which property will make a great investment.

2. Spend Less Money Fixing Houses

Save money on building materials, paint, and appliances. Check out ReStore–Habitat for Humanity’s retail outlets where quality used and surplus building materials are sold at a fraction of normal prices–for building materials, hardware, lighting, doors, and oops paint. Find an appliance discount store that offers like-new or scratched appliances for half price.

3. Design to Sell - Don’t Just Blow ‘n Go

Rise above the typical investor’s "blow ‘n go" approach. Don’t just spay paint everything white and install boring beige flooring. Research your target market and use colors and decorating details you know attract your profiled home buyer.

4. Home Staging

In a buyers’ market, home staging becomes more important to sell for top dollar. You don’t need to furnish a vacant house, but a few staged decorations help buyers visualize living in the home. Your goal–set up suggestions of activities that buyers connect with so they daydream about living in your home.

5. Sell Your Home Fast

Stay ahead of the real estate market: sell fast. Don’t waste your precious time showing to other investors. Look for home buyers who can’t wait to LIVE in your home. Negotiate with real estate agents on commissions; know what services you will need and shop around. If you select a full-service agent, make sure you get what you pay for including their opening the home and turning on the lights and air conditioning for other agents’ showings. Guard your sale. Keep the home buyers motivated and keep the house in order for the all important date–appraisal day.

Learn how to fix and flip houses and make money in any real estate market!

Copyright © 2006 Jeanette J. Fisher

Jeanette Fisher, America’s “Dream Home” Maker, offers free home selling information at http://sellfast.info. Learn how to profile your buyers and create a buyer’s “Dream Home.” Plus, get the added benefit of expert real estate advice. Explore Home Staging with Design Psychology books.

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When it comes to mortgage leads, your ultimate goal is to make money. Mortgage lead companies can provide you with a lead. The rest is up to you.

For starters, finding the right lead company is key. Be sure to do your research and find a mortgage lead company that sells good quality leads. Not the type of leads that are recycled, or bought from third party companies and resold over and over again.

When calling a prospect on one of your mortgage leads, you may at some point be confronted with the challenge of an objection from your customer. This in no way is a reason to abandon the lead.

Some of the challenges you may be confronted with, are as follows.

“I am no longer interested.”

If the prospect hits you with this line, chances are they got cold feet. This is understandable due to the fact that purchasing or refinancing a home is a very large financial undertaking.

Say something like this.

Oh, I’m sorry to hear that. After reviewing your on-line application, I was able to fit you into a really nice program based on the information you provided.

Nine times out of ten, this will catch their ear.

Another challenge you may come across is that they are working with someone else.

This could be true if you are purchasing your lead’s non exclusively. Most lead companies will sell their leads four to five times.

If you are confronted with this challenge, say something along these lines.

Oh, I’m very sorry to hear that, I have a really great program I’m sure you would be interested in. If you have just one moment, I would be happy to go over it with you.

This approach will normally get them thinking and want to hear more. Make sure they understand the importance of shopping around in this industry.

If neither one of these approaches works with the challenges you are faced with by your customer, then send them an e-mail. Most lead providers do provide the address on the lead.

You may also want to mail them out some brochures about the products and services you have to offer.

Remember, you work hard for your money, so work your leads. Don’t give up after the first objection, and your closure ratio will be sure to go up.

Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry, He is the owner of http://www.jconners.com, a mortgage resource site. You can also check out his blog at http://wwwmortgagespot.blogspot.com for more articles related to the sales and marketing of your mortgage products.

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The average Minnesotan may have noticed it last spring (2005).
The real estate signs popped up right on schedule with the
spring tulips just as the snow melted and ground thawed. Soon
neighborhoods were filled with signs advertising new listings
and open houses. But as Memorial Day came and went, many Twin
City residents began to question why the house down the block
had not sold. At spring baseball practices and graduation
parties, people across the metro were asking, “Hasn’t that house
been on the market for over a month?” The usual answer was,
“Something must be wrong with the house.” As the summer
progressed and more houses came on the market, observant
neighbors began to realize no “SOLD” signs were going up.
Minnesota homeowners were hit with the reality of a Buyer’s
Market.

So what is a Buyer’s Market? For many Minnesotan’s it may be
hard to remember. After all for the past eight years or so we
have experienced a red hot seller’s market. There were many,
many more buyers looking for houses than sellers wanting to
sell. A homeowner who chose to sell could set a price on his
property, put the listing on the MLS and get an offer in days.
Many sellers were faced with multiple offers with some exceeding
the asking price by thousands. Ah, the good old days!

A Buyer’s Market is just the opposite. The Twin Cities (and
greater Minnesota) now has an inventory of homes on the market
that is expected to last 3-4 months, with no new listings. In a
typical area, a buyer might have 10-20 homes that will meet
their needs and price parameters. If the buyer is flexible on
location and amenities, they can have upwards of 50 homes to
choose from. With so many options, home buyers are taking their
time, becoming educated, and being very picky before making a
home purchase.

So what should Minnesota homeowners do if they are considering
selling their home? It may be hard to wait out; a typical market
swing can last 5-7 years. (It was a seller’s market for almost
eight years, after all.)

*Get your home in tiptop shape! Fix everything! Yes, that does
mean you need to put on a new roof or fix the shower or strip
off the ugly wallpaper in the kitchen. Whatever needs repair or
is outdated needs to be fixed. Project houses do not sell well
in a buyer’s market unless they are very, low priced.

*Work with an experienced Realtor to price your home
realistically. The refinance appraisal you received last fall
will not be applicable. It is very important to look at the
current competition in your neighborhood and surrounding areas
and compare all of the amenities. If there is a better deal out
there, the buyer’s won’t consider your home at all.

*Consider FSBO only as a last resort. This is not a market
where an MLS listing and a sign in the yard will sell your home.
Work with a professional Realtor to get the most from your
investment.

*Be Patient! Even with professional marketing, it will take
time but homes do sell in Buyer’s markets. It just takes longer
both in preparation and duration.

Copyright 2006 Teri Eckholm

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I was in the rental business for seven-years, made 1.3 million dollars the first five years, got ill, and had to get out of it slowly, but had the money to do it. I could have made five million had I stayed in another five years. But my point in is this: I watch TV, on all these quick ways to make money, and people really belief this crap. I mean, I owned seven buildings, but I worked 24/7. Ended up in court a dozen times; fought with the State over this and that. I mean, you don’t get it for nothing like these TV fantasy folks would have you belief. Just buy this and that and don’t invest, and you’ll make it. First of all you need credit. Second, if you don’t have $20,000-in the bank, if a furnace goes out, or your gas pipes go out, or whatever, who is going to pay for it? What can happen, will happen; the fantasy people forget to add that little equation into the formula.

But why do people fall into this group? I thought about it, and being a licensed counselor, I met a lot of people who fell into this gap. I call it the fantasy gap. Everyone herds to them like wild geese. These TV folks tap into your fantasies. Easy to do, even Hitler said: “It is easier to fool the masses than the few.” He also was tapping into human nature. That is where the fantasy festers. Make a romance for them, and quick to the fantasy, and find the needy, shake it up, and you got your clan.

What some people do is create a reputation, and then live on the momentum it has. For instance, I could go around saying: look at me, what I made from rental property. I can show you how to do it. Buy my book, and so forth and so on. And when you review my background you will say: yup, he has what he says he has. Now I got you buying my book, and I look good from my reputation, and I did make the money. But the fantasy is: you can have the gold for simple minerals, like an alchemist would have you believe. Not much work involved, just sign your name, and claim the goods. It is not like that.

A confirmed reputation, and now I got your money to show you I got wealth. Many of us fall stupidly into money needs, and think a miracle will happen. That is not the way it works. You cannot cajole the devil and expect to come out on top. If you fell into bankruptcy, it is because of your mismanagement of your money, it is as simple as that.

These phony goofballs on TV, do not demand the truth, as I am doing, reality is not prepared to pay the handsome price they want, truth is not part of the fantasy, lies are the fantasy, nor will it draw you to them to buy what they are selling. But gold that is made from sand will catch your attention. Like the man says on TV, jus sign your name here, and you’ll make $30,000 in 30-days. If that was the case, what’s he selling books for.

Author/writer Dennis Siluk, has written in counseling magazines during the l990’s, as a licensed counselor, and looks now at how
people fall into the fantasy gap in real estate. He lives in St. Paul, MN, and Lima, Peru http://dennissiluk.tripod.com

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