hotels articles

1. Using an out-of-town lender.

Getting a mortgage in a timely and hassle-free manner is the “key that opens the door” to your new home.

Lenders who don’t live in the area you are buying in will not have the contacts needed to process your loan in an efficient and timely manner. Are you aware that if your lender fails to get you your loan on time, that your earnest money deposit may be at risk of being forfeited?

Your best bet is to ask your real estate agent whom they have used before and who they trust.

If it is important to you to use a lender from out-of-state (family member, friend etc.), your best bet is to have your lender refer your business to a local lender. This will help insure that your out-of-state lender receives a referral fee, they don’t violate state mortgage laws, and most importantly you are able to close on the home you want to buy.

Mortgage story: The very first transaction I was involved in after I got my real estate license was a nightmare due to a negligent lender. I was representing a buyer from Las Vegas (I live in St. George, Utah) that insisted on using a Las Vegas lender. Unfortunately the lender would rarely return calls or answer his phone. He failed to close on time. We extended the closing date time and again, and time and again the out-of-state lender failed to have the loan ready. The buyers were frantic and the sellers were angry. Finally eight weeks after we were supposed to close my buyers finally dropped the lousy lender and went with a local lender that I recommended. To my buyer’s amazement, by using the local lender, we closed the transaction 10 days later.

2. Not using a loan approval letter when making an offer on a property.

You’ve found “The Home” and want to make an offer to buy it. Now anybody can make a full price offer and get it accepted.

What if “The Home” is priced at $275,000 but you offer $250,000 and say that you will pay for the home by getting a new loan?

The sellers, when presented with your $250,000 offer, know nothing about you except that you seem to think their home is worth less than they feel its worth. At that point they will probably do one of two things. They might reject your offer outright. Or they might counter your offer at close to their asking price. As far as they’re concerned they never considered your original offer to be a “real” offer.

Do you think that they would have taken your $250,000 offer more seriously if you had said you could pay cash? Of course they would have, after all money talks.

What if you had already received full loan approval from a lender. Not just pre-qualified, or pre-approved (Being pre-approved is kinda like being pre-pregnant), but fully approved for a home loan with a letter from the underwriter to prove it. A letter that is as good as “cash in the bank”. You’ve become a “Power Buyer”! You never know, maybe the seller would accept your offer, rather than letting a good buyer get away.

Wow, if your offer was accepted, you just saved $25,000 on the purchase of your home! And all you had to do was meet with the lender before you went house hunting.

3. Buying too much house for your income.

I used to do “Broker Price Opinions, or BPO” for banks. This is where a bank would contact me to find out the value of a home that they had given a loan on. Often times this “BPO” was because the homeowner was losing or had lost their home because they could no longer afford the home. What a terribly sad event for that family.

Things happen in life that you might never expect. Don’t unknowingly “open the door” to future foreclosure and bankruptcy by getting a mortgage that you can “grow into”. Life rarely works out the way you expect.

One of the best moves I’ve ever made was purchasing my current home. When I bought this home I qualified for a home twice as expensive as the one I bought. Payments on my home rarely cause me stress or concern.

4. Thinking “short-term”.

Want to really scare me? Tell me you want to buy a home today and that you will want sell it in two, three or four years. Yikes! Talk about wanting to lose money.

Real Estate home values generally rise very slowly in a slow or soft real estate market. In St. George, where I live, our average time between hot markets (when home values rise quickly, usually doubling) is ten years. If you bought $250,000 home in a slow market, in three years it might be worth $265,000. Your cost to sell with commission and other costs would be $18,200. You would lose $8,200 for your short term thinking.

If you have to move within three years of buying a home, it would be better to use the home as a rental for a few years, and sell it when the market will allow you to make a profit. Better yet rent it out until the top of the next hot market, then sell it and potentially make $250,000 profit.

WHY PANAMA?

Panama is more than just a Canal…it is definitely way much more! The Republic of Panama is a cosmopolitan metropolis with a great biodiversity of nature where you can find a mix between tranquility and a well developed city.

In fact, Panama is a paradise to invest, to enjoy, to shop, a paradise of service, of friendly people, with seven ethnic Indian groups that still conserve their millenary traditions, with a Canal serving the world in between two oceans, a Canal considered to be the eight wonder of the world, with a variety of the most famous international chains of hotels, convention centers and a sustainable ecology in development, Panama is this and way much more!

Panama is considered to be in the 3rd position for “best place to retire in the world”; The Republic of Panama is also considered to be the best place to live outside the United Estates. This is according to the renowned “International Living” magazine and experts that promote the life style of US citizens retired in foreign countries. The “American Association of Retired Persons” a magazine for retired people, has also considered Boquete and Chiriquí in the Republic of Panama to be one of the four best places to have a home outside home. This rating was given after ten key indicators that included security, beauty, costs, climate, political stability and others.

Everything is relatively close and accessible in the Republic of Panama “Center of the World and heart of the Universe” counting with direct flights from the United Estates, Europe, Asia and Latin-American, with more than 150 private banks, business centers where you can buy or sell any type of product at the best international prices. Panama is a commercial empire!

The Free Trade Zone (Colon City) in the Republic of Panama is the second most important trade center of the World after Hong Kong. This position is given since Panama has the best route or shortest from the Pacific to the Atlantic Ocean to move global trade. For these reasons, the Republic of Panama offers a great variety of Malls (Multiplaza, Multicentro, Los Pueblos and others) and duty free shopping centers with an excellent relation between quality and price where you will be able to experience the best shopping of your life!

More people than ever are retiring overseas, as they cannot maintain the same lifestyle at home as medical costs soar, inflation depletes their savings and state support declines.

For most people they want a quality lifestyle at a cheaper cost, but they don’t want a culture shock. They still want to be close to home with all the comforts and there is one country that offers this:

Costa Rica

Record numbers of Americans are moving here, as it’s an affordable quality lifestyle and the culture shock is minimal for the following reasons:

Wealth

Costa Rica is one of the richest countries in Central America and infrastructure such as roads, airports internet access, property, shops and entertainment are all of a high quality.

Large Community of retirees

Retiring overseas to Costa Rica has been the choice destination of Americans for the last decade and the large community that has built up here, has bought with it a culture to make new arrivals feel that they have the comforts of home around them.

Another important point to keep in mind is Costa Rica is just a 3 hour direct flight from the southern US states, so it really no different to moving states in the US.

The main reason people are retiring overseas though is to get a better quality of life at an affordable cost.

Costa Rica is popular and will continue to be so, due to the following reasons:

Price

Beachfront property at up to 70% less than in the US and a country where you can live on $2,000 a month comfortably, means that those social security checks simply go much further.

Quality of life

Low crime, friendly locals and people who have time for each other (just like they did years ago), in one of the most beautiful countries on earth, add up to a stunning lifestyle.

When you’re in your “golden years” you want to enjoy them!

Costa Rica allows you to do just that, in one of the most beautiful countries on earth.

Pristine beaches, volcanoes, rainforest and an abundance of wildlife, make this a country of diversity and beauty.

You can relax and enjoy a wide variety of leisure including:

World class fishing, treks in the rainforest, sailing or maybe just a round of golf - The list is endless and you will nver be bored.

Baby boomers will continue to retire overseas and Costa Rica will remain a destination that attracts more and more people.

Retirees get an affordable lifestyle and a quality of life that is simply not available in the US and Costa Rica is just 3 hours from the US.

If retiring overseas has not been something you have considered before because you don’t want to be in a totally different culture, Costa Rica offers you the best of both worlds:

An affordable slice of paradise and all the comforts of home.

If you have never considered retiring overseas, then consider Costa Rica and you may be glad you did.

House hunting can actually be an enjoyable experience if you take your time and do your homework. Really! In my years as a Realtor, Investor and just a plain old looker before that I discovered the following ways to make house hunting less stressful and more effective.

Key to it all is first deciding where you’d like to live, then making it your business to learn as much about schools, hospitals, grocery stores, shopping, medical facilities, recreational amenities and so on.

Once you’ve done that you’re ready to investigate about the crime rate. Is it a safe location, or do you need to be considering another location?

And as awkward as it may be to talk about, you want to assess the quality and character of the people who live in the area. Obviously, you can’t interview them, but you can get a fairly good sense of their character by the condition of their homes and from the activities you might observe.

For example, if your prospective neighbor has discarded auto parts, household appliances and other stuff in their front yard you might want to reconsider your choice. A poor location when you buy will definitely be a negative factor if and when you decide to resell the home at a later date.

But once you’ve zeroed in on a good location, you’re ready for the next step of finding your dream home. can start to think seriously about searching for your dream home. But instead of spinning your wheels by looking at houses randomly, you should determine what you really want in a house beforehand and be quided by those things in your search.

Make a list of things that are important to you. Do you want a single story house, or do you prefer two stories? Will 3 bedrooms and 2 baths do, or do you really need 4 bedrooms and 2 & 1/2 baths? Making a list will not only save you time, it will also be a big help to your Realtor in planning your viewings.

Next comes the biggie. Get pre-qualified for a mortgage loan before jumping in the car to tour houses. You need to know how much house can you afford, which most people don’t know.

Affordability is based upon income, credit status, interest rates, down payment, closing costs and the type of loan selected. By getting pre-qualified by a lending institution you will know what you can afford to spend, which will save you time by establishing the price range you should be looking in before you begin your house hunting tours.

Once armed with information about how much house you can afford you’re ready to begin looking at homes. Make notes after each viewing each property, because after 2 - 3 homes they’ll start running together and you won’t be able to remember the details of each one as you think you will.

Finally, you need your own Realtor; someone who is working for you and is looking out for your interests. When you call the Realtor on a “house for sale” sign you’re speaking to the seller’s agent, who represents the seller and will be looking after the seller’s interests.

Like I started out saying, house hunting can be an enjoyable experience when you take your time and do your homework, but when done wrong it can be a terribly stressful situation. Fun and easy, or difficult and stressful. You decide

If anyone thought that the present sluggishness in many housing markets in North America was going to hurt Realtors the most is better off to think again. It seems that the slowdown in both the new construction and the resale markets and the consequential drop in pricing levels is having reverberations none other than in … Europe. This is so because we have reached such a high level of economic integration, that it can be safely stated that when we screw up in North America our European friends end up footing the bill.

Globalization is the term commonly used to refer to the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology. Clearly the economic interdependence between the United States and Canada on one side, and many members of the Eurozone - especially those belonging originally to the former Western Europe - on the other side has never been more remarked than now. Not only there is a vigorous flow of capitals going both ways, but also the trade of goods is at its apex. And this appears to be the problem.

The European Union has released economic data as to the end of the second quarter, showing a GDP growth of 3.7 percent annualized, its fastest in six years. So fast, in fact, that for the first time ever the Zone has outrun America, Britain and Japan. The engine that has spurred such record-breaking growth, however, was the ever-increasing consumerism mostly on the part of Americans. In essence, Europe has cashed in on the spending power of Americans, which has increased hand-in-hand with the credit that lenders in North America have extended to consumers, secured by their over-valued and over-appreciated real estate equity.

Consumers in North America have had more financial flexibility these past few years than ever before, and for good or bad they have taken full advantage of it. This flexibility has allowed them to choose to carry debt when in the past they may not have had this option. Additionally, it is certainly true that low interest rates have encouraged more borrowing, which in turn has spurred more spending. All the Porsches, BMWs, Volvos and Mercedes that we see on the streets are proof of it.

Now, however, the tide is changing and the American economic powerhouse is slowing down. This fact alone is causing a series of short-term changes that will make life harder for the Euro economies. North-American consumers seem to be more and more reluctant to snap up German cars, French perfumes and Italian vino. The United States, with an annualized GDP growth of 2.5 percent as at June 30 lead the way, and there is a high degree of scepticism among analysts that European consumers alone will be able to fill the 1.2 percent GDP gap so as to keep the Euro GDP high and steady.

Furthermore all this comes at a time when some Euro area countries, most notably Germany and Italy, are due to tighten their budgets. Their public finances need repairing, and they need to act fast. In Germany, the government wants to raise the value-added tax by three percentage points next January. Italy’s newly elected government, based on a very frail one percent majority of a coalition of center and leftist parties, is not openly talking about any such drastic moves but, nonetheless, has initiated already a series of public spending cuts which are sure to make the Fall labour market exceeding Italy’s sweltering mid-August heat by a few degrees. It would appear that the new economic theory of former Prime Minister Silvio Berlusconi of “lowering taxes and raising pensions” was more palatable to Italians than Romano Prodi’s neoclassical approach of “everybody out”. Some unions are calling already for a psychiatric evaluation of the new Prime Minister.

Metropolitan D.C. & Northern Virginia — A great place to live

All those statistics confirm what many of us already knew — Northern Virginia is a great place to live. That’s why owning a home here is a great investment!

Real Estate seems to be on everybody’s mind these days. Especially in California, everybody you meet and half of your phone calls involve people trying to get you involved in real estate and refinancing. The problem with this is that the bubble has burst. Nobody wants to pay these ridiculous prices for homes anymore. The best way to invest in real estate involves land, and just land. Unlike the flooded real estate market, only a few people know how to correctly invest in land. For one thing, prices for vacant land are low. However, the price for vacant land in developing communities goes up; this is the key to making money though land investment. There has recently been a large surge in demand for land.

Over many years, real estate was the big deal. People only know about condos and houses. In California, the bubble is getting especially big as it’s becoming a buyers market and internet rates are going up, as well as lowering house prices. California is proving to not be as good an investment as it was thought of before, yet there are still communities you can invest in and develop in other states.

Many people don’t invest in land. However, prices have been going up. People have started to invest due in part to affordable prices, easy selling ability and the surge in prices of land in booming communities.

Another benefit is that you most likely will not need a mortgage payment for investing in land; especially if you are just starting out. You will not need insurance, as well, until you start development.

Has an amazing business deal fallen through the cracks because a primary funding source refused to lend you the money needed to get the deal done? Have you been rejected by the bank when trying to obtain a loan?

Beyond the primary lending market, there is an alternative funding source known as the sub-prime or secondary market. The National Real Estate Investor published its Borrower Trends Survey in February 2006, which indicates after approaching banks, 32% of respondents cite private investors as debt sources. Another world of financing opportunities quick and easy to deal with and that want to lend to you!

According to the 2002 U.S. Census Bureau there are 271 secondary market financing establishments, a 22.5 percent increase in comparison to the 1997 survey results. The trend of increase is still developing as the secondary market gains wide visibility. Private lending, an alternative you should take into consideration, is a fast and flexible way to receive funding. An essential difference between the primary and secondary markets is secondary markets will accept higher risk and less than perfect credit.

Banks often will decline funds not only to imperfect credit sources, but also for not owning enough assets. Banks may also decline your request for a loan if the amount is not large enough! If you are trying to invest in a new office building and need the capital to get off to the right start, don’t give up! Research the secondary market and get the cash to purchase the building you need. If you need cash flow the secondary market is where you go!

The building blocks to your wealth start with stepping off the beaten path that traditionally led to banks, credit unions, and mortgage companies. The secondary lending market has expanded significantly over the years and accounts for a great deal of home and business purchases today. A multitude of business professionals and investors are seeking opportunities but don’t know where to turn.

Let’s get back to focusing on our goals and dreams and turn our backs on glass ceilings and closed doors. It’s the entrepreneurs that make our economy churn. What are you waiting for? Now is your chance to build businesses and wealth. I will see you on the early beaches of retirement!

Maria Fee is a mortgage professional, real estate investor, teacher, and master marketer with more than 20 years of business experience. Maria is the President of REMI KNOX, LLC, a group of investors who purchase real estate notes nationwide. Quoted by the media as an expert, she is continuously recognized for her extraordinary knowledge and real estate investing experience.

Amendments to the PAMD Act 2000 are effective today (21st August 2006). Fair Trading Minister Margaret Keech claims that the amendments will make property buyers and sellers more confident of getting value for money and improved consumer protection.

We are not so sure these amendments will work in achieving those aims. The basic changes to the PAMD Act 2000 are effectively;

A) Bidders at Auctions will have to register prior to Auction, including providing suitable identification and receiving a marker to identify when they make a bid.

B) Any Market Opinions an agent provides to a property seller will need to be substantiated by a comparative market analysis (CMA).

Now call me a cynic about the behaviour of real estate agents, but these are really not going to achieve the goals of cleaning up the behaviour of dishonest real estate agents.

These legislated changes really only make the honest hard working agents, and yes they do exists, more honest. The dishonest agents will get around this in no time, whilst buyers and sellers believe the system will protect them.

Consider these approaches to both of the above changes.

A) The dishonest agent can still get a friend or an associate to register at an auction. That person can be informed of how high to bid – so that they bid just below the reserve, to try and get the potential real buyer to increase their bids. Even if no-one bids after the friend or associate bids – they are still below the reserve price, so it just looks to all and sundry like there were some serious buyers interested in that property. Additionally did you know that the Auctioneer can bid on behalf of the Vendor. This is called a vendor bid, and the way an auctioneer does those bids can still influence a potential buyer into believing they are bidding against a genuine bidder.

B) A market opinion is not a property valuation. It’s the opinion of the real estate agent on what the likely sale price of a property will be. They now must substantiate his opinion by comparing similar type properties that sold within 5km of the property in question. Now I reckon 5km covers quite a lot of ground, in-fact it could cover suburbs that have a significantly lower average price. Additionally what about the time frame – is last 6 months a good indication. Last 12months. The market opinion is simply not a valuation done by a professional independent valuer. The agent has an agenda, they will substantiate to their hearts content and legitimately under the PAMD Act, to get the result they are after.

Sorry Mrs Keech we don’t believe either of these changes do anything to address the dishonest agents, and the process they employ.

If a property seller wants to feel truly comfortable they should seek an independent valuation. Then they can decide whether they need to use an agent or not.

Some times you think you know it all!

Over the last seven weeks I have been keeping an eye on a property for sale in a town next to me. I wrote an article about it as being for private sale by owner. I did contact the owner enquiring about the property and the purchase price. At the time I thought the price was too high for the current market. So I let it go.

About one week ago I was doing a delivery for my company past this property and I noticed two agent’s signs in the front yard. There was a lady in the front yard doing some tidying up, so I decided to stop and quiz her about the property. I had only talked to her on the phone previously regarding the price.

I went through the property and thought it had potential for a vendor’s terms deal. While I was going through the property I was mentally structuring a suitable deal that would suit the both of us. All through that I had misgivings about ripping the old lady off. She seemed to be a sweet old dear. She said that she had to sell so she could buy a new unit that was being built now. It was due for completion in six weeks.

I knew then and there, there was no way she was going to sell her property in time to be able to pay for her new unit. It was obvious she had not allowed enough time to sell her house. What was going to happen was, the unit would be ready and she would not be able to pay for it as she would not have sold her home.

As I was going through the home I was putting together a vendor finance deal in my head for this ladies property. I asked the lady if she would consider taking the property off the market and dealing directly with me. I wanted her to be able to get out of her home and be able to buy into the unit. That way we would have a win/win situation. What I wanted was to buy this property with none of my own money. But unfortunately for me the deal did not stack up. The figures were not right for me to proceed with the deal. So I had to walk away from it.

Ten days later I was talking to a local agent and he said he had the property sold for five thousand under her asking price five weeks prior, but the lady rejected the offer. No longer did I feel for her, she had her chance. This brings back one of my golden rules, Fall in love with the deal, not the property…

Also while I was talking to the local agent we were talking about some local developments. He mentioned about some units being built in another part of town. As it turns out there is a house for sale right along side this block of units. It is suitable for four units on the block. The house needs major work, so it will need to be removed to make way for a unit development.

Another thing I started to see was I tried to cut the agent out of the original deal. This goes against all I believe in. They are part of your team. The agent is on the spot with all the latest developments, this one proved that to me with the unit development site. I think that you must stick to your rules at all times. That way you can always go back and do another deal with them at a later stage. This can be a hard lesson to learn. But it is worth it. As you can see I have found this out.